OREANDA-NEWS. December 20, 2010. MDM Bank signed a five-year loan agreement with the European Bank for Reconstruction and Development (the EBRD) under which the latter will provide USD 110 million to finance the small and medium-sized business lending programme of the Bank. MDM Bank will on-lend the funds to SME clients in roubles.

 “The five-year loan from the EBRD will help MDM Bank meet the increasing demand from the small and medium-sized companies for long-term capital”, remarked Konstantin Rogov, the Chief Financial Officer of MDM Bank.

 “This loan deepens our strategic relationship with MDM Bank and is particularly important because it provides funding for a grassroots sector of the economy at a time when Russian banks in general still face an acute shortage of long-term debt financing,” said Nick Tesseyman, the EBRD’s Managing Director for Financial Institutions.

The EBRD is a shareholder in MDM Bank with an equity stake amounting to 5.2 percent of ordinary voting shares.