Belgrade, Serbia, December 28, 2011—
IFC, a member of the World Bank Group, is providing a €50 million loan to Komercijalna Banka ad Beograd to encourage further growth of the bank, strengthen the overall banking sector in Serbia, and boost the economy.
The new subordinated loan qualifies as Tier II capital and is part of IFC’s strategy to support systemic banks in the region and encourage economic growth in the Western Balkans. IFC Capitalization Fund in December 2009 invested around €42 million in non-voting preferred shares of Komercijalna Banka, providing the bank with a capital buffer that contributed to its growth during the past two years.
“This transaction further consolidates our strategic partnership with IFC,” said Ivica Smolic, President of Komercijalna Banka’s Executive Board. “The new loan will reinforce the capital position of Komercijalna Banka and help us expand our services in Serbia and other markets where we operate.”
Tomasz Telma, IFC Director for Europe and Central Asia, said, “We are working with Komercijalna Banka to strengthen the banking system in Serbia, and ensure that finance continues to flow to businesses and people that need it. IFC’s loan will support the future growth of the bank.”
IFC continues to provide strong support to banks and businesses in Europe and Central Asia, with a focus on working with systemic banks to support economic growth and job creation, and priority sectors including agribusiness, infrastructure, and climate change. IFC’s investments are complemented by advisory services programs. IFC committed $2.68 billion in Europe and Central Asia in fiscal year 2011.
Serbia became a member of IFC in 2001. To date, IFC's investment portfolio in Serbia stands at $672 million (€513 million), including financing mobilized from other partners. IFC Advisory Services aim 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
www.ifc.org
.
For more information about Komercijalna Banka ad Beograd, visit
www.kombank.com
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