Bucharest, Romania, March 21, 2012
—IFC, a member of the World Bank Group, and Banca Romaneasca have joined forces to expand trade finance in Romania, a partnership that will help small and medium enterprises create jobs and move into new markets.
Banca Romaneasca has signed on as an issuing bank in IFC’s Global Trade Finance Program (GTFP), which supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.
Through its 134 branches across Romania, Banca Romaneasca provides financing to support the exports and imports of its corporate and SME clients. Access to trade finance is essential for SMEs that depend on cross-border trade to remain viable and seek new opportunities for growth in overseas markets.
“Trade finance is a key segment in our corporate banking strategy, and the Global Trade Finance Program is a natural choice for a partnership,” said Cosmin Calin, Executive Director of the Corporate Division at Banca Romaneasca. “As an issuing bank under this program, Banca Romaneasca will contribute to Romania’s economic growth by sustaining the involvement of Romanian companies in international trade.”
Georgina Baker, IFC Director of Global Trade and Supply Chain Solutions, said: “As access to credit tightens, IFC is quickly responding by deploying its resources to areas where it can have immediate impact and reach. As a GTFP issuing bank, Banca Romaneasca will expand trade finance in Romania, helping businesses expand into new markets and create jobs.”
Since its inception in 2005, IFC’s award-winning GTFP has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. Most significantly, in fiscal year 2011, 53 percent of the program’s total volume was to support trade in the world’s poorest countries, and 79 percent went to SMEs. The program includes more than 200 partner banks in over 90 emerging-market countries.
Romania became a member of IFC in 1990. Currently, IFC’s portfolio in Romania stands at $632 million. IFC’s role in Romania is evolving in light of the country’s EU membership and the growing availability of private financing. In addition to its work in financial markets, IFC has focused on agriculture, general manufacturing, infrastructure, and health care.
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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