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
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.