IFC Boosts Access to Finance for Smaller Companies in Kosovo
Pristina, Kosovo, June 18, 2013
- IFC, a member of the World Bank Group, is working with Kosovo’s TEB bank to increase lending to micro-, small, and medium-sized enterprises (MSMEs), boosting the competitiveness of the country’s banking sector and spurring economic growth.
IFC will lend €4.5 million to TEB. The subordinated loan will be counted towards the bank’s supplementary capital, enabling increased lending to MSMEs. Expanding access to finance for MSMEs in Kosovo, where unemployment is around 45 percent, will create jobs, grow the economy, reduce poverty and sustain overall development.
“TEB has a strategic partnership with IFC and we are working together to increase the quality and diversity of our financial services to businesses in Kosovo,” said Orkun Mungan, Managing Director at TEB Kosovo. “We remain committed to our clients in Kosovo and want to see them grow and expand beyond the country’s borders and realize their potential.”
By extending this loan to TEB, IFC is also supporting foreign investments and encouraging other investors to explore possibilities in Kosovo.
“We are working with TEB in Kosovo to ensure that smaller companies have access to capital,” said Tomasz Telma, IFC Director for Europe and Central Asia. “IFC’s loan will increase lending to local companies at a time when businesses continue to face difficulties in obtaining funding for their development.”
Kosovo became an IFC member and shareholder in 2009. So far, IFC has invested in the manufacturing and financial sectors. IFC’s advisory services in Kosovo aim to improve the investment climate, boost the performance of companies, and increase private sector participation in infrastructure projects.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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