FRANKFURT, April 19 -- The International Finance Corporation (IFC), the private sector investment arm of the World Bank, announced today the opening of an office in Frankfurt. From this new German base, IFC will develop closer links with Mittelstand companies for private sector ventures in Central and Eastern Europe and continue its close association with the German corporate and banking sectors. The Frankfurt office will be managed by Alexander Graf Keyserlingk, an IFC executive since 1971. "Over the years, German companies and financial institutions have played an important role as joint venture partners and investors in IFC projects throughout the developing world," commented Sir William Ryrie, executive vice president of IFC. "With emerging market economies growing in the East, there is increased opportunity for cooperation." "German investment activity in Central and Eastern Europe is crucial to the development of these new economies," stated Mr. Keyserlingk. "We hope to facilitate Mittelstand expansion
in this region particularly in industries where these companies are world leaders." Since the fall of the Berlin Wall, IFC has mobilized almost $2 billion in project finance and committed about $500 million of its own funds to a wide variety of ventures in Central Europe. IFC also has provided technical assistance to the new governments of Central and Eastern Europe and the former Soviet Republics. IFC's activities in this region include the first model privatization in Russia, the first major restructuring in the Czech Republic and the first major joint venture in Poland. (More) IFC has worked with 253 German firms on 480 projects in 55 developing countries since its founding in 1956. German financial institutions have provided $901 million in financing to IFC projects. Germany is the IFC's third largest shareholder. IFC has a capitalization of $2.45 billion. Its activities and policies are collectively determined by 154 member countries. IFC's mandate is to foster economic growth in the developing world by
promoting private sector investment. It accomplishes this through financing private sector projects, helping companies mobilize capital in international financial markets and providing technical assistance and advice to governments and private businesses. Since its inception, IFC has provided nearly $11 billion in financing for more than 1,000 companies in 100 developing countries. For every $1 invested by the IFC, it mobilizes $6 from other investors. Today, it is the largest source of direct financing for private sector projects in the developing world. Headquartered in Washington, D.C., it has representatives in 35 cities around the world with 9 offices in Europe. (30)
