Mfo Crystal Tender

Developmental and Regional Cooperation ImpactBy focusing on SMEs the operation is consistent with the BSTDBs Medium Term Strategy and Business Plan 2015-18. While the MTSBP seeks to limit institutional growth in the financial sector where BSTDB is already highly exposed it considers SME operations to be a priority due to their high potential development impact. The operation contains no apparent direct regional cooperation elements insofar as it is not yet known who will be the beneficiaries of the loan facility and whether they are engaged in cross-border activities with neighboring BSEC countries. If entities that conduct export activities were to use the lending facility it would help increase trade links with neighboring states to that extent.Environmental Classification and Impact summaryMicrofinancing is normally not likely to generate any significant negative environmental and social ES impacts. There are however certain ES risks associated with microfinancing for which the FI needs to be capable to ensure that these are properly assessed and mitigated. The ES due diligence of the Borrower focused primarily on the existing ES management system such as policies procedures rules and responsibilities and how well this is integrated in the general portfolio management to ensure that the sub-loans financed are properly assessed are compliant with the local legal requirements and meet the requirements of the BSTDB ES Exclusion List. The assessment concludes that the Borrower has recently instituted a basic ES management system which is commensurable with the level of ES risks associated with its microfinance activities. This includes procedures for transaction screening and categorization assessment mitigation and control. The Borrower reported that it is not engaged in financing any activities contained in the Banks ES Exclusion List.