WASHINGTON, D.C., July 15, 1998 --- The International Finance Corporation today signed agreements to invest US$10 million in Banc Post S.A., a commercial bank that is slated to become Romania’s first state-owned bank to be privatized. Banc Post was created in 1991 to take over the Romanian Postal System’s banking and payment transactions. The privatization should encourage modernization of the Romanian banking system.
IFC agreed to make a subordinated convertible loan of US$10 million to finance the expansion of the bank’s network of branches and automatic teller machines and to modernize its information technology systems. IFC’s investment will help prepare Banc Post for privatization and strengthen its operating capacity. The loan will be convertible into equity of the bank when it is privatized.
The President of Romania Dr. Emil Constantinescu, and Mr. James D. Wolfensohn, President of the World Bank Group, attended the signing in Washington.
"IFC’s investment supports the Romanian government’s efforts to revitalize the banking sector through privatization and restructuring," Mr. Wolfensohn said. "IFC’s presence is expected to expand the universe of interested bidders for Banc Post and facilitate its privatization."
IFC, part of the World Bank Group, fosters economic growth in the emerging markets by financing private sector investments, mobilizing capital in the international financial markets and providing technical assistance and advice to governments and businesses.
