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IFC €20 Million Loan to Help Revive Serbia’s Car Industry, Boost Economy

Belgrade, Serbia, April 12, 2012— IFC, a member of the World Bank Group, is providing a €20 million loan to PMC Automotive Serbia, a new metal-stamping factory near Kragujevac, to strengthen Serbia’s car industry and boost the overall economy.
PMC Automotive Serbia is a joint venture between CLN Group and PROMA Group, two Italian automotive suppliers.
The PMC factory will supply parts to FIAT’s plant in Kragujevac. The FIAT plant will manufacture the new FIAT L0, a subcompact car with improved fuel efficiency. The current production capacity of the FIAT plant, 20,000 cars per year, is expected to grow to 140,000 cars per year in 2013, and possibly more than double that amount by 2015.
“IFC recognized a good project and supported the establishment of PMC in Serbia,” said Maurizio Raviola, CEO of PMC Automotive Serbia. “IFC has shown flexibility and responsiveness amid very difficult conditions in the financial markets.”
The PMC factory, located in a supplier park less than a kilometer from FIAT’s plant, is expected to generate 370 jobs. The total cost of the project is estimated at €37 million.
“IFC supports the revival of the car industry in Serbia and creation of new skilled jobs in the country,” said Tomasz Telma, IFC Director for Europe and Central Asia. “Attracting foreign investors such as FIAT and PMC that invest in export-oriented projects will greatly benefit the local economy.”  
Serbia became a member of IFC in 2001. To date, IFC's investment portfolio in Serbia stands at $698 million (€533 million), including financing mobilized from other partners. Through its Advisory Services, IFC aims to improve the investment climate, introduce international standards, strengthen corporate governance, and attract private sector participation in development of infrastructure projects.  
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit .
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