Washington DC, June 23, 2003—
The International Finance Corporation, the private sector arm of the World Bank Group, will provide a Euro loan equivalent of $8 million to Micro Finance Bank A.D., a provider of credit and other financial services to micro and small enterprises in Serbia and Montenegro. The bank, which IFC helped establish, began its operations in 2001. IFC owns 16.67 percent of the bank.
The investment fits IFC’s strategy of strengthening local financial institutions in Serbia and Montenegro in support of the private sector. IFC’s first loan to the bank of $4 million has already had a strong developmental impact by helping create new jobs, accelerating business growth among micro and small enterprises, boosting confidence in the banking sector, and strengthening microfinance banking through the introduction of commercially oriented microfinance techniques.
“IFC is committed to strengthening the financial sector in Serbia and Montenegro to promote the growth of entrepreneurs in the micro and small business sectors,” said Mr. Khosrow Zamani, director of IFC’s Southern Europe and Central Asia Department. “In a very short time Micro Finance Bank has become the leading provider of credit and banking services to these businesses in the country, and we are happy to support the bank again.”
IFC’s mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY 2002, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY 2002 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.
