Washington, D.C., June 30, 2004
.—The International Finance Corporation, the private sector arm of the World Bank Group, has agreed to provide $5.0 million in financing to Victoriabank, one of Moldova's leading commercial banks. The loan will be used for on-lending to Moldovan corporations, small and medium enterprises (SMEs), and individuals. The agreement represents IFC's second loan to the bank, following a $4.0 million credit line IFC extended in 2001.
Mr. Jyrki I. Koskelo, director of IFC's Global Financial Department said,
“IFC's loan will not only enable Victoriabank to continue providing long-term financing to its clients, but also strengthen its capacity to evaluate their environmental sustainability and creditworthiness. We are pleased to be supporting Victoriabank’s strategic growth.”
Mr. Khosrow Zamani, IFC's director for Southern Europe and Central Asia, added, “Victoriabank has been a good partner for IFC in Moldova and has successfully demonstrated its ability to provide quality service and financing to local borrowers. Better access to loans will foster entrepreneurship and increase employment.”
Mr. Victor Turcanu, President of Victoriabank, said “We are pleased with the strong partnership we have developed with the IFC over the last several years. IFC understands and appreciates the financing needs of Moldovan corporate borrowers.”
As of end 2003, Victoriabank had $112 million of assets, a loan portfolio of $58 million, and equity of $16 million, making it the second-largest private bank in the country. Founded in 1989, Victoriabank was the first commercial bank in Moldova. Since then, it has expanded its reach to all major economic centers of Moldova, with a network of 11 branches and 430 staff.
IFC has played an active role in Moldova since 1995, committing $67 million of its own funds and arranging $25 million in syndications for investments in power, telecommunications, agribusiness, and the financial sector. In addition, IFC has also supported technical assistance projects in banking, tourism, wineries, food processing, and leather industries.
The mission of IFC (www.ifc.org) 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 FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
