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EBRD launches EUR 1 bln coronavirus financing package

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The European Bank for Reconstruction and Development (EBRD) on Friday unveiled a EUR 1 billion "Solidarity Package" of measures to help companies deal with the impact of the coronavirus pandemic, state news wire MTI reports.

The EBRD said the package is an "initial response" and it stands ready to do more if and when needed.

Under the emergency program, the EBRD will set up a "resilience framework" to provide financing for existing EBRD clients with strong business fundamentals experiencing temporary credit difficulties.

The planned measures will include an expansion of trade finance and the provision of short-term finance of up to two years through financial institutions, specifically in support of SMEs.

The EBRD said it will assess the need to restructure existing loans, including the possibility of extending maturities and changing other conditions and use its ability to disburse in local currency, including the possible conversion of existing facilities into local currency.

The response will put a premium on providing a rapid response to the needs of companies that are suffering from the effects of the coronavirus and the global economic turmoil that has ensued, it added.

In formulating its own response, the EBRD said it is closely following the statements of its major shareholders and coordinating with other multilateral development banks in order to exchange ideas and learn from previous experiences.

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