WASHINGTON, D.C., June 29 -- The International Finance Corporation (IFC) has approved a risk management facility that will make Tokobank, a leading commercial bank based in Moscow, the first privately-owned Russian bank to gain access to long-term international swap markets. IFC's risk management facility will enable Tokobank to hedge currency and interest rate risks in its portfolio and to offer risk-hedging products to its private sector clients. Tokobank will be able to execute financial swap transactions worth about US$50 million with maturities of up to seven years. "The introduction of risk management techniques in Russia is an important step in the development of the country's banking sector," said Edward Nassim, Director of IFC's Europe Department. "This innovative transaction is made possible by the strong management and technical expertise at Tokobank." Tokobank began operations in 1990. It has 16 branches throughout Russia, Ukraine, and Armenia, and 1,000 employees. The bank has paid-in share capit
al of US$250 million with total assets of approximately US$700 million, at December 31, 1993. It offers financing in hard currency and in rubles. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in emerging economies.
