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Bucharest, Romania, June 18, 2007 —
IFC, the private sector arm of the World Bank Group, will provide a seven-year loan to Romania’s Credit Europe Bank to support the bank’s expansion into small and medium enterprises and strengthen its balance sheet by providing local currency funding with a longer tenor than currently available in the local market.
The $26 million equivalent investment will be the first local currency loan offered by IFC in the Romanian market. As an internationally triple-A rated institution, IFC leverages its credit to provide customized local currency products to private sector clients.
Tamer Ozatakul, General Manager of Credit Europe Bank, said, “In 2006 we took the first step to address all segments of the Romanian economy by establishing our SME banking unit. The facility, granted by IFC, will help us develop our SME client base and better meet their needs by providing medium-term local currency loans. We hope that our role will continue to grow in serving the SME sector, which is an important engine for growth in Romania.”
Ana Maria Mihaescu, IFC Chief of Mission in Romania, said, “This loan is a sign of IFC's commitment to Romania and its innovative approach to serving market needs, particularly the financial sector, which is key for economic development. This local currency loan will strengthen the banking system in Romania, while enabling Credit Europe Bank to increase services to the underserved SME sector.”
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
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About Credit Europe Bank, Romania
Credit Europe Bank (Romania) S.A., formerly Finansbank (Romania) S.A., was launched in 2000, following the acquisition of Banca de Credit Industrial si Comercial S.A. by Turkey’s FIBA Group. The bank, which offers corporate and retail banking, has 1,700 employees and operates through 85 branches, reaching more than 250,000 individuals and 20,000 corporate and SME clients. For more information, visit
www.crediteuropebank.ro
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