OREANDA-NEWS. June 25, 2010. Eurasian Development Bank (EDB) approved the Program for support and development of small and medium businesses through target credit lines to financial institutions, reported the press-centre of KASE.

The Program pursues to create favorable conditions for development of small and medium businesses in the bank member countries and enhance businesses competitiveness at domestic and global markets. Therewith the program should help develop production base of small and medium businesses, create more jobs, increase tax receipts to budget, boost domestic trade, mutual investments and growth of goods turnover between the bank member countries, and pump their respective markets with goods and services.

The program covers bank member countries' financial organizations, meeting certain norms and qualification requirements of EDB.

Provided complying with all requirements EDB will open 3 - 5-year credit lines for financial organizations for target financing of small and medium business projects. Credit sums will be set on an individual basis within respective limits.

At that a borrower, financial organization, will independently select projects for financing, provided complying with requirements of the Program, and provide data thereon to EDB. The bank, in its turn, will accord the selected projects after compliance assessment with the program imposed requirements. Sub-credits will be granted to small and medium businesses for up to 5 years for the following reasons:

- Acquisition and modernization of fixed assets;

- Expansion and diversification of business;

- Introduction of new technologies;

- Development of innovative activities;

- Output of production for export and replacement of import;

- Output of high value added production in non-raw sectors;

- Expansion of mutual trade and investment between economical entities of bank member countries at the expense of production export, equipment shipment, raw material, components, other goods and services;

- Refilling of working capital.

Taking into account that EDB is operating in five countries with economies at different development stages, the Bank approved own definition of small and medium businesses, thus, making the Program universal for bank member countries' economies.