MSME Technical Co-operation Programme: Call-Off Assignments Framework

The Ukraine MSME Technical Co-operation Programme s in support of the USD 100 million Ukraine MSME Financing Framework and relevant stand-alone transactions which will provide senior debt to eligible EBRD private and state commercial banks in Ukraine for on lending to Ukrainian MSMEs. The Programme will support EBRDs efforts to encourage the resumption and mass-scale roll-out of the MSE and SME lending in Ukraine by EBRD partner financial institutions. The Programme will comprise two components: (i) the Call-Off Assignments Framework ("COF") and (ii) the Programme Support Component ("PSC"). The Programme will prioritise assistance to new EBRD partner banks ("PBs") who did not receive EBRD TC before. However, clients of the earlier implemented Ukraine Micro Lending Technical Co-operation Programme ("UMLP") will also be eligible to receive relevant TC support. Objectives: To mitigate the impact of the crisis on the risk appetite and lending conditions of the financial intermediaries in the MSME sector, targeted technical assistance is required to enable PBs effectively and efficiently on-lend funds to MSMEs. The Programme will support EBRD's efforts to encourage the resumption and mass-scale roll-out of the MSE and SME lending in Ukraine by EBRD partner financial institutions. Therefore, the goals of the Project are broadly threefold: (1) Support resumption of lending to MSMEs, including in rural and agricultural segments; (2) Develop and/or fine-tune MSME lending techniques and risk management in PBs, and (3) Implement recovery measures to improve the PBs asset quality, in particular, the portfolio arrears ratio. To achieve the Project objectives, the Consultant will: Design and implement lending schemes tailored to the financial needs of eligible MSEs in Ukraine and help PBs set up MSE lending operations in active branches; Review and propose improvements to PB's credit origination, appraisal, approval and monitoring processes to improve SME loan quality; Assist PB, on an as-needed basis, in the standardisation of the SME sub-loan appraisal process;  Train local managers and a sufficient number of MSE and SME loan officers in the methodology for analysing and granting loans and also in recovery and collection techniques;  Develop in-house training capacity of PBs by training the trainers and enabling senior staff (head of lending departments, branch manager) to conduct training off and on the job; Assist PBs in review, design, and implementation of marketing and customer service, new product development (e.g., for rural and agricultural lending), APS/MIS; Provide a range of institutional building measures to ensure sound portfolio quality management, proper organisational/risk management (including credit risk management) and internal controls;  Review overall loan portfolio of selected PBs;  Support design, adaptation and implementation of lending scheme for rural and agricultural lending;  Ensure sustainability of TC measures allowing respective PBs to "graduate" from the TC Programme.