Moscow, October 26, 2004—The International
Finance Corporation (IFC), the private sector financing arm of the World
Bank Group, signed an agreement today to provide a $10 million loan to
Credit Bank of Moscow (CBM), a private Russian bank focused on small and
medium enterprises (SMEs), individual entrepreneurs, and retail clients.
IFC’s loan will support expansion of the bank’s SME lending activities.
This 5-year loan is the Bank’s first long-term financing from an international
financial institution. The project is part of IFC’s banking sector
strategy in Russia aimed at building long-term relationships with medium-sized
independent private banks. IFC’s involvement will help in CBM’s development
by supporting its efforts to implement international banking practices
and strengthen corporate governance standards.
“Credit Bank of Moscow has a clear focus on financing micro, small and
medium companies and individuals, which we consider very important for
Russia. We are pleased to support CBM’s program to offer longer-term
loans to small and medium private companies. While the financial
market in Moscow is more developed than in other parts of Russia, local
SMEs still lack access to funding and the shortage of long-term funding
is particularly acute,” -- commented Edward Nassim, IFC’s Director for
Central and Eastern Europe.
Mr. Alexander L. Khrilev, Chairman of the Board - President of Credit Bank
of Moscow, noted that: "IFC's facility will undoubtedly contribute
to further reinforcement of CBM's position in the SMEs lending market which
has a great potential for development. We would like to express our gratitude
to IFC not only for the long-term funding provided, but also for the assistance
rendered in improvement of our corporate standards. We expect further development
of the collaboration between IFC and CBM over new programs and products."
Credit Bank of Moscow was founded in 1992 and now ranked #73 by total
assets and #68 by equity in Russia. In October 2004, Moody’s Interfax
upgraded CBM’s national scale rating to A3 (rus). In July 2004 Moody’s
confirmed its E+ financial strength and B1/NP foreign currency deposit
ratings. Recently, Fitch Ratings assigned CBM a long-term foreign currency
rating of B-, and a short term B. CBM’s operations are based in
Moscow and the Moscow Region. The Bank’s business is focused on the SMEs
sector and microentrepreneurs, and retail lending.
International Finance Corporation (www.ifc.org).
Russia joined IFC in 1993. Since then through the end of June, 2004, IFC
has committed $1.8 billion, including $210 million in syndicated loans,
to finance 91 projects in Russia across a variety of sectors, including
banking, leasing, housing finance, infrastructure, mining, agribusiness,
pulp and paper, construction materials, oil and gas, telecommunications,
information technologies, retail, and health care.
The International Finance Corporation is a member of the World Bank Group.
IFC’s mission is to promote sustainable private sector investment in transition
economies, helping to reduce poverty and improve people's lives. IFC finances
private sector investments in the emerging markets, 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.