Skopje, FYR Macedonia, April 11, 2012
—IFC, a member of the World Bank Group, is providing a €10 million senior loan to FYR Macedonia’s Ohridska Banka, a subsidiary of Société Générale, enabling the bank to increase access to finance for small and medium enterprises and boost economic recovery in the country.
The global economic crisis affected FYR Macedonia and other southern European countries, straining banks and weakening economic development. This new loan is part of IFC’s strategy to strengthen the region’s banking sector and support economic recovery by increasing lending to small and medium enterprises.
“This transaction consolidates our strategic partnership with IFC,” said Filip Kotora, member of the Board of Directors of Ohridska Banka. “The IFC loan will further enhance the diversity of funding sources of Ohridska Banka and help us reinforce our credit support for small and medium enterprises who are defying the crisis by investing in their future.”
IFC continues to provide strong support to banks and businesses in Europe and Central Asia, with a focus on banks that support economic growth and job creation. Ohridska Banka is the fourth-largest bank in FYR Macedonia, with total assets of €396 million and a network of 28 branches. Société Générale is the main shareholder and holds 70 percent of Ohridska’s capital.
“We are working with Ohridska Banka and Société Générale to stabilize the financial and banking system in the region and ensure that capital continues to flow to businesses and people that need it,” said K. Aftab Ahmed, IFC Director, Financial Markets, Europe and Central Asia, Middle East and North Africa. “Our loan will increase funding to smaller companies, which generate export and employment opportunities in the country.”
FYR Macedonia became a shareholder and member of IFC in 1993. IFC’s portfolio in the country stands at $87 million as of December 31, 2011. IFC is focusing its investments on increasing access to finance by supporting the development of local financial institutions. IFC Advisory Services aim to improve the performance of private sector companies and attract private sector participation in 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
www.ifc.org
.
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