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$124 billion. The Bank Austria
– Creditanstalt Group has the most extensive network of any western bank
in central and eastern Europe. Bank Aval, one of the largest private
banks in Ukraine, with strong links to much of the Ukrainian corporate
sector, will support the development of the Bank's marketing activities.
IFC's activities in Ukraine draw on a strong local presence to provide
a combination of direct investments and technical assistance on small-scale
privatization, support for small and medium-sized private enterprises and
land reform. To date, IFC has approved four investments (including Creditanstalt
Ukraine) totaling US$ 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
Laurence Carter, IFC