On 21 April, Center-Invest Bank and the European Bank for Reconstruction and Development (the EBRD) signed an agreement granting Center-Invest Bank a USD20m subordinated loan.

The term of the loan is ten years.

The loan funds will be included in Center-Invest's equity (Tier 2 capital). This will increase Center-Invest Bank's invested capital and allow it to continue increasing its assets by achieving growth in lending volumes while maintaining the required capital adequacy ratio. Center-Invest Bank intends to use the loan to further develop and expand its lending to SMEs and its retail banking services in the Southern Federal District.

‘This is an important transaction and demonstrates the continuing support of Center-Invest Bank shareholders to the equity base of an important regional bank and should allow it continue financing the private enterprise sector in the South of Russia,’ said Kurt Geiger, director of the EBRD Financial Institutions Department.

This is already the third subordinated loan obtained by Center-Invest Bank. In 2004 the International Finance Corporation (IFC) granted Center-Invest a six-year USD5m subordinated loan. In 2007 the Black Sea Trade and Development Bank (BSTDB, Greece) granted Center-Invest a seven-year USD10m subordinated loan.

    Key Financial Indicators (IFRS), RUR millions

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