Donors Set up New Fund for Crisis-Hit Firms in Asia, Europe

The European Bank for Reconstruction and Development, International Finance Corp., Netherlands Development Finance Co. or FMO and Asia Debt Management Hong Kong or ADM Capital are setting up a regional fund that will support midsize companies in Central and Eastern Europe, Central Asia and Turkey, which are reeling from the impact of the financial crisis.

The fund, which hopes to gather 300 million euros (USD409 million), will target the rehabilitation of firms with strong operations but have little access to financing through restructuring, rescheduling, refinancing, debt-equity swaps and liquidity management. It will initially focus on firms in Kazakhstan, Romania, Turkey and Ukraine.  

ADM Capital will manage the fund, which includes investments of 60 million euros from EBRD, 35 million euros from IFC and 15 million euros from FMO.

About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.