By Philip H. de Leon
On June 1, 1999, the Black Sea Trade and Development Bank (bstdb), headquartered in Thessaloniki, Greece, commenced operations. The main goal of the bank is to accelerate development and cooperation among its 11 shareholder countries—Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The bank’s authorized capital is SDR 1 billion (about $1.35 billion).
The bstdb will provide financial and technical assistance to viable projects and trade activities. Eligible projects, from both the public and private sectors of its member countries, are required to facilitate trade and investment activities, promote economic prosperity in member countries, achieve economic development in the region, and mobilize domestic and foreign capital. Priority will be given to telecommunications, manufacturing, financial services, transportation, energy and natural resources, and agribusiness.
The bstdb will offer loans of up to 35 percent of the total project cost or will take equity participation not exceeding 33 percent of the total capital of an enterprise. In the first years of operation of the bank, trade finance that may support up to 100 percent of a transaction will be available for the short term.
The bstdb is interested in acting as a complementary source of financing and in attracting additional sources of financing to the region.
For further information, contact the bstdb at tel: +30 (31) 290-400; fax 221-796, 286-590; or email info@bstdb.gr, or visit its Website at www.bstdb.gr.