WASHINGTON, D.C., June 10 -- The International Finance Corporation (IFC) has approved an investment of US$15 million for an agency line to co-finance small and medium sized companies in Estonia, Latvia, Lithuania, and Poland.
"The expenses associated with evaluating and processing small investments has prevented many international financial institutions from considering investments in small and medium sized companies," said Mr. Edward Nassim, Director of IFC's Europe Department. "This agency line will provide financing for these smaller enterprises which serve as a vital source of jobs, growth and exports in the region."
The Investment Fund for Central and Eastern Europe (IO), a fund established by the Danish Government to support Danish investments in Central and Eastern Europe, is the co-financier of the agency line. IO provides equity, medium- and long-term loans, and guarantees on a commercial basis to promote economic, commercial, and industrial development in Central and Eastern Europe.
IFC and IO will invest similar amounts in each project and expect combined investments to range from US$1 million to US$6 million for each project. Fifteen to 20 projects in the region are expected to benefit from the agency line. IFC and IO will jointly choose the projects based on the viability and soundness of the project proposals.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
