BUCHAREST, April 11, 2005 — The International
Finance Corporation, the private sector arm of the World Bank Group, will
provide a $27.5 million loan to Romania’s Banca Commerciala Ion Tiriac.
The agreement was signed today by Ana Maria Mihaescu, IFC’s chief of mission
in Romania, and Selcuk Saldirak, Banca Tiriac’s chief executive officer.
IFC’s financing will broaden Banca Tiriac’s funding base and support
its operations. This will help expand the term finance market for corporates
and small and medium enterprises in Romania.
Jyrki Koskelo, IFC’s director for financial markets, noted, “IFC’s participation
in this project is part of an ongoing effort to assist Romania’s financial
sector in meeting an increased demand for high-quality, customer-focused
financial services. This demand is coming especially from small and
Khosrow Zamani, IFC's director for Southern Europe and Central Asia, added,
“IFC is pleased to support financial institutions like Banca Tiriac that
strive for high standards and seek to lead the market by adopting best
Selcuk Saldirak, chief executive officer of Banca Tiriac, said, “High
quality products and services for small and medium enterprises are a key
element of Banca Tiriac’s development strategy, reflecting the high potential
of this market segment in terms of growth and profitability. Our partnership
with IFC will put us in a better position to meet the growing needs of
SMEs in a dynamic economy. We are honored that IFC considers Banca Tiriac
a trustworthy partner for its long-term projects in Romania.”
Founded in 1991, Banca Tiriac was the first privately owned Romanian bank
established after the fall of Communism in 1989. It is Romania’s sixth-largest
bank in terms of net worth and its tenth-largest in total assets, with
about a 3 percent share of the country’s banking system. The bank has
a rapidly expanding network of 60 branches and 200 ATMs.
The mission of IFC (www.ifc.org)
is to promote sustainable private
sector investment in developing countries, helping to reduce poverty and
improve people's lives. IFC finances private sector investments in the
developing world, mobilizes capital in the international financial markets,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to governments and businesses. From its
founding in 1956 through FY04, IFC has committed more than $44 billion
of its own funds and arranged $23 billion in syndications for 3,143 companies
in 140 developing countries. IFC's worldwide committed portfolio as of
FY04 was $17.9 billion for its own account and $5.5 billion held for participants
in loan syndications.