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IFC APPROVES US$ 7.3 MILLION FOR ESTABLISHMENT OF JSBC CREDITANSTALT UKRAINE


Brigid Janssen
Phone: (202) 458-4698
Fax: (202) 974-4384
E-mail: bjanssen@ifc.org


WASHINGTON, D.C. May 11, 1998 - The International Finance Corporation signed an investment agreement on May 10 to support the creation of a new commercial bank, JSCB Creditanstalt Ukraine, that will provide a comprehensive range of services to international corporate and institutional customers and local exporters.  The investment will help strengthen trade and business relations between Ukraine and western and central Europe.

IFC will take an equity stake of 20 percent for US$2.3 million in Creditanstalt Ukraine and extend a five-year credit line of US$5 million.  The bank will use IFC financing to provide commercial banking products including working capital, trade finance and equipment acquisition for Ukrainian enterprises. The bank will be involved in project finance, trade finance, corporate lending, treasury, custodian business and foreign exchange operations and international payment services.


Mr. Edward Nassim, Director of IFC's Europe II Department, noted that a strong private financial sector is the basis for economic growth in Ukraine. He said that Creditanstalt Ukraine, a well-capitalized and professionally managed bank, would assist Ukraine in meeting the need for strong financial intermediaries to support international trade and business flows by providing modern and efficient banking services.


Creditanstalt Ukraine is a joint-venture bank between Creditanstalt AG Vienna, Bank Aval of Ukraine and IFC.  Since 1997 Creditanstalt has been a part of the Bank Austria Group, the largest banking group in Austria with aggregated total assets of US$124 billion.  The Bank Austria – Creditanstalt Group has the most extensive network of any western bank in central and eastern Europe.   Bank Aval, one of the largest private banks in Ukraine, with strong links to much of the Ukrainian corporate sector, will support the development of the Bank's marketing activities.


IFC's activities in Ukraine draw on a strong local presence to provide a combination of direct investments and technical assistance on small-scale and mass
privatization, support for small and medium-sized private enterprises and land reform. To date, IFC has approved four investments (including Creditanstalt Ukraine) totaling US$ 27.3 million in the country. The Corporation looks forward to increasing the scope of its activities in Ukraine and elsewhere in the region.


IFC, a member of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets and providing technical assistance and advice to governments and businesses.


For further information please contact:


Alyona Voloshina, IFC Kiev
Tel: 380-44-293-8374
e-mail: voloshina@ifc-gw.kar.net


Laurence Carter, IFC
Tel: 202-473-1454
E-mail: lcarter@ifc.org