Black Sea region bank gives first ruble loan in Russia

By Muhammed Ali Gurtas

ANKARA (AA) - A regional bank under the Black Sea Economic Cooperation (BSEC) is providing a loan in rubles to a local Russian bank as its first local currency loan in the country, the bank announced on Thursday.

The 1 billion-Russian ruble (about $17 million) loan will be used by Center-Invest Bank (CIB), a leading local private bank based in southern Russia, to support the development and expansion of small- and medium-sized enterprises (SMEs), according to the loaning institution, the Black Sea Trade and Development Bank (BSTDB).

“The BSTDB is actively developing much-needed local currency financing in member countries, including Russia. We are happy to provide our first facility in rubles to the long-term partner CIB," Ihsan Ugur Delikanli, the Black Sea bank’s president, said in a statement.

"This new facility will mitigate foreign exchange risks for CIB, and help increase funding for local businesses in the local currency," Delikanli added.

The statement noted that CIB is ranked among top 15 Russian banks on SME lending focusing on the agriculture, manufacturing, and transportation sectors via its over 130 branches.

The BSTDB, headquartered in Greece, provides a wide range of financial services to enhance economic development and regional cooperation among its member countries with its over 3.45 billion euros (some $3.85 billion) in authorized capital.

The bank operates under the BSEC, which was founded in 1992 as a multilateral political and economic initiative aimed at peace, stability and prosperity in the region.

Last month, member countries met in Istanbul, Turkey for its 25th anniversary summit and inaugurated the organization's new permanent international secretariat office.