Cheboksary, Russia, August 21, 2012
—IFC, a member of the World Bank Group, is providing an eight-year, 500 million Russian ruble ($15.6 million) loan to Chuvashia Republic to finance construction and renovation of preschool facilities, expanding access to quality preschool education in Russia’s frontier Volga region.
This long-term investment will support Chuvashia’s capital expenditure program in the preschool education sector in 2012-2014 to build and renovate 47 kindergarten schools. The program is expected to add over 7,000 new places to the region’s preschool network.
“In Chuvashia we pay major attention to social development, including healthcare and education,” said Mikhail Nozdriakov, Chuvash Republic Minister of Finance. “With IFC finance we will significantly improve access to modern kindergarten services to children not only in the capital, but in many other towns throughout the republic.”
Tomasz Telma, IFC Director for Europe and Central Asia, said, “Developing social infrastructure in frontier regions is one of our major priorities in Russia. We hope that this project will have significant demonstration effect to other regions of Russia looking for opportunities to expand capacity and improve the quality of healthcare and education.”
Chuvashia is a long term IFC partner and client. Starting from 2006, when IFC partially guaranteed a regional bond issue, IFC has also supported development of roads and the healthcare network in the republic. This initiative is part of IFC’s strategy in Russia to support private sector development and encourage economic growth.
The Russian Federation became a member and shareholder of IFC in 1993. Since then, IFC has invested nearly $6 billion in Russia, including $1.5 billion in syndicated loans, and is involved in 250 projects across a variety of sectors. IFC’s investment portfolio in Russia stands at $2.54 billion, the third-largest country exposure for IFC globally.
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, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
About Chuvash Republic
The Chuvash Republic is one of the 83 Federal subjects of the Russian Federation, located approximately 650 kilometers east of Moscow with autonomous executive and legislative branches and budget. The population of the Republic is 1.2 million people. The Chuvash Republic has a strong credit history and budget management reputation. It has a standalone rating of Ba2 (international scale) and Aa2.ru (national scale) from Moody’s Interfax Rating Agency.
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