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In Fiscal 2013, IFC Invests Record $4.5 Billion in Europe and Central Asia

Moscow, Russian Federation, August 22, 2013 — IFC, a member of the World Bank Group, supported the private sector in Europe and Central Asia (ECA) by investing a record $4.5 billion during fiscal year 2013 – a 35 percent increase from fiscal year 2009. IFC also provided advisory services worth $36.4 million, with a focus on tackling climate change and projects in the poorest countries and fragile and conflict-affected states.
Out of 131 investment projects, IFC channeled about 50 percent of its ECA commitments to the financial sector, expanding access to finance for businesses and individuals, with a focus on underserved countries and regions. Some $1.2 billion of IFC’s commitments were mobilized from international and regional commercial banks, despite the economic uncertainty in European financial markets constraining credit and limiting investment.
“At a time of uncertainty and volatility in the Eurozone, affecting economic development across Europe and Central Asia, IFC’s role in the region remains critically important,” said Tomasz Telma, IFC Director for Europe and Central Asia. “Last fiscal year we invested $4.5 billion in Europe and Central Asia to support inclusive and sustainable private sector growth. In FY14 we will continue working to expand access to finance and support climate change-related projects with a particular focus on agribusiness, high value-added manufacturing, transport, and social infrastructure.”
Highlights of IFC’s results in the region for FY13, which ended on June 30:
·        IFC invested $2.25 billion in 82 financial markets projects, complemented by advisory services focused on corporate governance and risk management, helping expand access to finance. IFC’s trade finance program provided a record $1 billion worth of guarantees, facilitating cross-border trade and strengthening economic ties.
·        IFC supported landmark transactions supporting the development of local capital markets to help them become a viable source of long-term financing in Russia, Turkey, and Romania. IFC also placed its first local currency bond in an ECA country with the Volga bond in Russia.
·        IFC invested more than $1 billion in 65 projects targeting micro, small, and medium enterprises.
·        IFC committed $186 million in 32 projects in the region’s poorest countries, in addition to over $360 million mobilized through syndicated loans, MIGA guarantees, and public-private partnerships.
·        IFC invested $983 million in 33 projects in manufacturing, agribusiness, and services, including its first climate adaptation project in Turkey, and over $400 million in agribusiness in Ukraine, Armenia, Moldova, Croatia, Turkey, and Serbia.
·        In agribusiness, IFC Advisory Services continued to provide training and advice to government inspectors and food producers on international best practices in food safety, helping improve the competitiveness of local food processors.
·        IFC invested $761 million in 16 projects in infrastructure and natural-resources sectors, including municipal utilities and transport infrastructure in Turkey and Russia and municipal pre-school education in Russian regions.
·        IFC invested a record $577 million in 31 climate business projects and provided extensive advisory support worth $12.5 million.
·        IFC’s public-private projects advisory team helped structure four PPP projects (KEDS in Kosovo, two transactions for Albania HPPs, and Zalkar Bank in Kyrgyzstan), mobilizing $465 million from the private sector.
·        To boost private sector growth in the region, IFC Advisory Services helped governments reform business permits, inspections, trade regulations and tax administration systems. With less inefficiency, administrative costs for the private sector have been reduced by over $52 million per year, significantly improving the region’s business climate.
In FY14, IFC will continue to support the diversification of economies, ensuring access to basic goods and services and expanding efforts to counteract climate change. By focusing on the poorest countries and regions, IFC aims to create opportunity for people to escape extreme poverty and promote shared prosperity.
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 FY13, our investments reached an all-time high of more than $25 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 .
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