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IFC’s Record Commitments Provide Critical Support to Banks and Businesses in Europe and Central Asia


In Istanbul:
Lotte Pang
Phone: + 90-212-385-2520
E-mail: LPang@ifc.org

In Moscow:
Nezhdana Bukova
Phone: +7495 411 7555
E-mail:
NBukova@ifc.org

Istanbul, Turkey, August 2, 2010—IFC, a member of the World Bank Group, announced today that it committed a record $3 billion to 105 projects in Europe and Central Asia during  fiscal year 2010, providing critical support in the region hardest hit by the global economic crisis.

More than 50 percent of IFC’s new investments in the year that ended on June 30, 2010 targeted the region’s banks, helping ensure that companies and individuals continue to have access to the finance they need. Nearly half of this activity was in frontier regions or the region’s poorest countries.

IFC’s crisis response facilities delivered strong results, committing more than $560 million in support of the region’s importers and exporters through the Global Trade Liquidity Program and IFC Global Trade Finance Program, and more than $120 million to help with distressed debt and asset recovery through the Debt and Asset Recovery Program.
 
Commitments in non-financial sectors totaled $759 million, including $208 million for agribusiness and $61 million for health and education projects.

“The coordinated approach taken by IFC and other international finance institutions has delivered strong results in Europe and Central Asia this year, supporting banks and businesses,” said Rashad Kaldany, IFC Vice President for Asia, Eastern Europe, Middle East and North Africa. “IFC has delivered on its commitments under the Joint International Finance Institution Action Plan for Central and Eastern Europe and promoted regional priorities such as addressing climate change and the sustainable development of agribusiness and infrastructure.”

IFC investments also addressed a number of regional priorities this year. Highlights include:

  • Climate change: Nearly $527 million in more than 20 projects, focused on energy efficiency, renewable energy, and cleaner production
  • Frontier regions of middle-income countries:  A record $807 million committed
  • Infrastructure: $646 million committed; 63 percent in frontier regions or the poorest countries; 30 percent with a climate change component
  • Investments between emerging markets: A record $225 million in  seven projects
  • Micro, small, and medium enterprises: $861 million committed; 25 percent of total projects
  • Central Asia and Azerbaijan: A record $400 million committed
  • Southern Europe: $848 million, including major transactions with Slovenia’s Gorenje and Turkey’s Akenerji  

This year in the region, IFC Advisory Services trained more than 500 stakeholders on crisis-related topics, helped catalyze the market for investments in energy efficiency and cleaner production, supported infrastructure development through public-private partnerships, and helped develop the agricultural sector and improve corporate governance.  

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

About the Joint IFI Action Plan for Central and Eastern Europe
In March 2009, the largest multilateral investors and lenders in Central and Eastern Europe—the EBRD, the EIB Group, and the World Bank Group including IFC—pledged to provide up to €24.5 billion to support the banking sectors in the region and to fund lending to businesses hit by the global economic crisis.  Under the two-year plan, the World Bank Group pledged to provide support of about €7.5 billion including up to €2 billion through IFC. IFC’s crisis response initiatives under the plan focus on the financial sector including trade finance and the development of distressed asset markets in the region.