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Moscow, October 26, 2004—
The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, signed an agreement today to provide a $10 million loan to Credit Bank of Moscow (CBM), a private Russian bank focused on small and medium enterprises (SMEs), individual entrepreneurs, and retail clients. IFC’s loan will support expansion of the bank’s SME lending activities.
This 5-year loan is the Bank’s first long-term financing from an international financial institution. The project is part of IFC’s banking sector strategy in Russia aimed at building long-term relationships with medium-sized independent private banks. IFC’s involvement will help in CBM’s development by supporting its efforts to implement international banking practices and strengthen corporate governance standards.
“Credit Bank of Moscow has a clear focus on financing micro, small and medium companies and individuals, which we consider very important for Russia. We are pleased to support CBM’s program to offer longer-term loans to small and medium private companies. While the financial market in Moscow is more developed than in other parts of Russia, local SMEs still lack access to funding and the shortage of long-term funding is particularly acute,” -- commented Edward Nassim, IFC’s Director for Central and Eastern Europe.
Mr. Alexander L. Khrilev, Chairman of the Board - President of Credit Bank of Moscow, noted that: "IFC's facility will undoubtedly contribute to further reinforcement of CBM's position in the SMEs lending market which has a great potential for development. We would like to express our gratitude to IFC not only for the long-term funding provided, but also for the assistance rendered in improvement of our corporate standards. We expect further development of the collaboration between IFC and CBM over new programs and products."
Credit Bank of Moscow
was founded in 1992 and now ranked #73 by total assets and #68 by equity in Russia. In October 2004, Moody’s Interfax upgraded CBM’s national scale rating to A3 (rus). In July 2004 Moody’s confirmed its E+ financial strength and B1/NP foreign currency deposit ratings. Recently, Fitch Ratings assigned CBM a long-term foreign currency rating of B-, and a short term B. CBM’s operations are based in Moscow and the Moscow Region. The Bank’s business is focused on the SMEs sector and microentrepreneurs, and retail lending.
International Finance Corporation (
www.ifc.org
).
Russia joined IFC in 1993. Since then through the end of June, 2004, IFC has committed $1.8 billion, including $210 million in syndicated loans, to finance 91 projects in Russia across a variety of sectors, including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care.
The International Finance Corporation is a member of the World Bank Group. IFC’s mission is to promote sustainable private sector investment in transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, 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 FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
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