Washington, D.C., December 18, 2002—The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, announced today an agreement to provide a 7-year loan of US$75 million to Romania’s Banca Comerciala Romana S.A. (BCR), the largest bank in the country in terms of assets. IFC’s loan is intended to strengthen BCR’s balance sheet by providing funding with a longer tenor than what is currently available in the local market.

Khosrow Zamani, IFC’s Director for Southern Europe and Central Asia, said: “This loan is a signal of IFC’s continued commitment to Romania, in particular the financial sector which is key for continued economic development.”

Dr. Nicolae Danila, Chairman & C.E.O. of Banca Comerciala Romana, stated: “The IFC loan, which represents a premiere for the Romanian banking system, will consolidate BCR’s capability for long-term lending to the Romanian economy. It is an important signal that the partnership between BCR and IFC is reaching a new and stronger stage. The agreement proves also the good international reputation BCR is enjoying.

BCR was incorporated in 1990 as a spin-off of the National Bank of Romania, which carried out the majority of banking activities under the one-tier banking system that operated in Romania before 1990. BCR is currently the largest bank in Romania by total assets, which totaled ROL139,421 billion at June 30, 2002.  The Bank's market share accounts for about a third of banking assets. Over 70 percent of BCR’s customers are privately-owned companies.

IFC’s (www.ifc.org) mission is to promote sustainable private sector investment in developing 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, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s committed portfolio at the end of FY02 was $15.1 billion, with an additional $6.5 billion held for participants in loan syndications. As of September 2002, IFC has 14 projects held and disbursed in Romania accounting for $122 million for it own account.