Bucharest, Romania, May 3, 2012—IFC,
a member of the World Bank Group, and Garanti Bank are joining forces to
expand the availability of trade finance for importers and exporters in
Romania to help promote economic growth and create jobs.
IFC has extended a $15 million credit
line to Garanti Bank under the Global Trade Finance Program, or GTFP, which
supports trade in emerging markets by providing partial or full guarantees
for individual trade transactions backed by IFC’s triple-A rating.
Garanti Bank, which operates 79 branches
across Romania, will use the credit line to scale up its trade finance
activity, particularly among its local clients in the agro-processing,
energy, and metallurgical sectors.
“Participating in the Global Trade
Finance Program will enable us to provide our clients with additional products
to help them pursue new opportunities in international trade,” said Murat
Atay, General Manager of Granti Bank Romania. “By developing business
in new markets, our clients will help fuel the recovery of the Romanian
Ed Strawderman, IFC Associate Director,
Financial Markets, Europe and Central Asia, said: “Through our trade
finance program, IFC is channeling much-needed financing to economies that
have been hardest hit during the global financial crisis. Access to trade
finance is critical to help Romanian firms, especially small and medium
enterprises, grow and create jobs.”
Since its inception in 2005, IFC’s
award-winning GTFP has issued more than 11,000 guarantees totaling $15.8
billion to banks on trade-related payment obligations of its financial
institution clients in emerging markets. Most significantly, in fiscal
2011, some 53 percent of the program’s total volume supported trade in
the world’s poorest countries, and 79 percent went to small and medium
enterprises. The program includes more than 200 partner banks in over 90
Romania became a member of IFC in 1990.
IFC’s current portfolio in Romania stands at $658 million. IFC’s role
in the country is evolving in light of the country’s European Union 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.
For more information about Garanti Bank,
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.