Belgrade, Serbia, December 13, 2010—IFC,
a member of the World Bank Group, and the European Bank for Reconstruction
and Development are jointly investing €8 million in Cacanska Banka ad
Cacak to strengthen Serbia’s banking sector and speed its recovery from
the global financial crisis. IFC is investing about €6 million and
the EBRD about €2 million.
This equity investment will strengthen Cacanska Banka, an important regional
bank in Western Serbia, by providing a capital buffer to ease liquidity
problems arising from the economic downturn. The capital increase
will allow the bank to continue lending to small and midsize companies,
thereby generating jobs and growth in the region.
Dragan Jovanovic, President of Cacanska Banka’s Executive Board, said:
“This capital increase reinforces the capital position of Cacanska
Banka and creates new potential for the bank’s further development and
strengthening of its position in the Serbian market.’’
The project will also enable Cacanska Banka, with the Serbian government
as its largest shareholder, to continue to develop into a proven, attractive
asset that will be privatized according to a timetable agreed on by investors
and the government.
“This investment demonstrates our joint commitment to Serbia’s banking
sector in a time of global financial crisis,” said Dimitris Tsitsiragos,
IFC Director for Middle East, North Africa, and Southern Europe. “We
are helping Cacanska Banka reinforce its position as an important lender
to small businesses in Western Serbia, while also helping the bank prepare
for privatization once the broader economy revives.”
This is the second joint investment of IFC and EBRD in the Serbian banking
system under the crisis response initiative. Last December, IFC and
the EBRD invested around €90 million in Komercijalna Banka ad Beograd.
“This transaction will help Cacanska Banka to reinforce its position as
an important SME bank in Western Serbia and will support its further development,
preparing the institution for privatization in the post-crisis period,”
said Hildegard Gacek, EBRD Director for Serbia.
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
For more information about EBRD,
For more information about Cacanska banka ad Cacak, visit www.cacanskabanka.rs.