Moscow, February 17, 2006—The International
Finance Corporation, the private sector arm of the World Bank Group, today
announced that Credit Bank of Moscow, a private bank serving small and
medium enterprises, is the first issuing bank in Russia to join IFC’s
Global Trade Finance Program.
Under the agreement, Credit Bank of Moscow will receive an uncommitted
trade finance line of up to $10 million. The bank will use this IFC guarantee
to facilitate its trade finance operations worldwide.
The Global Trade Finance Program supports trade with emerging markets by
supporting flows of goods and services to and from developing countries.
IFC provides guarantee coverage of bank risk in emerging markets, allowing
recipients to expand their trade finance transactions within an extensive
network of countries and banks, as well as to enhance their trade finance
service to their clients. IFC issued the program’s first guarantee
in September 2005. Since then, IFC has issued guarantees in excess of $80
million in more than 80 transactions.
Edward Nassim, IFC’s Director for Central and Eastern Europe, said, “The
Global Trade Finance Program is an important element of IFC’s strategy
to support Russian banks that focus on small and medium enterprises. By
guaranteeing trade transactions as small as $10,000, the program provides
support for trading in consumer goods, smaller machinery, and commodities,
items that smaller businesses particularly demand.”
This is IFC’s third project with the Credit Bank of Moscow, and it builds
on a partnership that began in 2004.
Credit Bank of Moscow’s Chairman of the Board-President, Alexander L.
Khrilev, said, “Since foreign trade is a vital part of many of our clients’
business, trade finance contributes significantly to Credit Bank of Moscow’s
performance figures. Our achievements in this market are largely due to
partnering with first-rate foreign banks and international financial institutions,
including IFC, our valued partner in a number of other projects. Hopefully,
participating in the Global Trade Finance Program will further expand the
geographic reach and volume of our operations.”
Sabrina Borlini, IFC’s trade officer for GTFP in Europe, said, "We
are delighted to have Credit Bank of Moscow as the first Russian bank to
join the Global Trade Finance Program. The program will increase
the amount and range of import financing products that Credit Bank of Moscow
can offer to its clients and will give the bank access to a global network
of corresponding banks."
About Credit Bank of Moscow
Credit Bank of Moscow was founded in 1992 and today ranks 59th by total
assets among Russian banks. Its operations are based in Moscow and
the surrounding region. In 2005, Moody’s confirmed Credit Bank of Moscow’s
E+ financial strength and B1/NP foreign currency deposit ratings. Fitch
Ratings also upgraded Credit Bank of Moscow’s national scale rating to
BB+ form BB (rus), and affirmed the bank’s international ratings in June
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries
provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition 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 FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.
Russia joined IFC in 1993. Since then IFC has invested $2.4 billion in
the country, including $246 million in syndicated loans, in more than 100
projects across a variety of sectors. In FY05 (July 2004–June 2005), IFC’s
investments in the country reached $832 million. IFC’s investment portfolio
in Russia currently stands at $1.7 billion, making it the largest country
exposure for IFC globally. IFC has invested in key sectors, including banking,
leasing, housing finance, infrastructure, mining, agribusiness, pulp and
paper, construction materials, oil and gas, telecommunications, information
technologies, retail, and health care. For more information, visit