ZAGREB, Croatia — At the 19th Annual Meeting of the European Bank for Reconstruction and Development (EBRD) today, International Cooperation and Development Fund (TaiwanICDF) Secretary General Tao Wen-lung and EBRD President Tomas Mirow signed a Side Letter formally extending cooperation between the two organizations through the EBRD-administered Financial Intermediary Investment Special Fund—Small Business Account (FIISF-SBA), and the related Financial Intermediary Investment Special Fund—Small Business Account II (FIISF-SBA II).

The TaiwanICDF and EBRD first cooperated in 1994, and have since jointly promoted investment and financing projects to improve private sector development in EBRD’s countries of operations across central and eastern Europe, central Asia and in the CIS. Cooperating primarily through the FIISF, the two organizations aim to support financial intermediaries for onward lending to micro-, small- and medium-sized enterprises (MSMEs), so that the sector can overcome constraints in gaining access to financial resources. As of May 2010, the TaiwanICDF and EBRD have signed agreements totaling almost US$50 million.

Many of EBRD’s countries of operations are former communist nations whose economies were formerly dominated by large-scale, planned enterprises. Since the advent of democracy in these nations, the previous lack of investment in the MSME sector has been exacerbated by the high costs of obtaining financing within the private sector. By investing directly in local financial institutions and by providing technical and professional consultancy services, EBRD is strengthening the capacity of the financial sector to perform onward lending, particularly to MSMEs.

The signing of the Side Letter today improves the flexibility and efficiency of TaiwanICDF funds disbursed through the FIISF-SBA and FIISF-SBA II. In addition to strengthening the TaiwanICDF’s commitment to MSME development, this action highlights the TaiwanICDF’s commitment to cooperating with the international development community.

Established in 1991 and headquartered in London, UK, the EBRD is the region’s foremost development agency. The Bank works throughout central and eastern Europe, central Asia and in the CIS to assist countries in transition to move from planned to market-oriented economies, and towards democratic, plural social structures. The 63 members of EBRD include the European Union and the European Investment Bank. Thirty of these members are recipients of financing from EBRD.

• Update: 2010/05/21
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