EBRD will give loans to Belarus timber industry

European Bank for Reconstruction and Development made a decision to support VMG Group’s business in Belarus. VMG Industry FLLC located in Mogilev Special Economic Zone and Swoods Export FLLC from Borisovo will receive loans. Specifically, the company from Mogilev may count on €5 million and the one from Borisovo, on €2 million.

Companies can reportedly use these resources to replenish their working assets in order to reduce the liquidity gap under unfavorable market conditions caused by the pandemic effects.

VMG Industry FLLL located in Mogilev Special Economic Zone and producing under IKEA brand is expanding production. The company intends to increase its design capacity for particleboard production by 73%, up to 260,000 m³ and curved plywood products, by two times – up to 48,000 m³ per year. Swoods Export located in Borisovo is developing its sawmill and timber processing shops where they make construction-purpose timber, pellets, as well as softwood furniture.