Chisinau, Moldova, September 7, 2001─The International
Finance Corporation (IFC), the private sector arm of the World Bank Group,
has signed an agreement to provide a US$4 million credit line to Banca
Comerciala Victoriabank SA (Victoriabank), one of the leading banks in
Moldova, for on-lending to small and medium-sized enterprises (SMEs) in
the country.
The IFC investment will support the development of Moldova’s SME sector,
which suffers from a lack of available financing for investment and working
capital. IFC has played an active role in Moldova since the country
became a member in 1995. Since then, IFC has approved approximately
$84 million in financing for seven investments in power, telecommunications,
agribusiness, and the financial sector as well as technical assistance
projects in banking, tourism, wineries, food processing, and leather industries.
Mr. Khosrow Zamani, Director of IFC’s Southern Europe and Central Asia
Department, who signed the loan agreement in Chisinau, said that the development
of the SME sector is crucial for the Moldovan economy. “The support
of SMEs through sound financial intermediaries is a key component of IFC’s
strategy in the country,” he said. “Moldova has faced difficult economic
times over the past ten years, but it is encouraging to see positive signs
of economic growth this year. IFC is pleased to contribute to the
sustainable development of the Moldovan economy through this credit line
for SMEs,” he added.
Mr. Victor Turcanu, Chairman of the Administrative Council of Victoriabank,
expressed his confidence that the credit line marks a first step in the
cooperation between Victoriabank and IFC. He also noted that the
bank continues to seek ways to strengthen its cooperation with international
financial institutions.
Victoriabank was established in 1989 as one of the first private commercial
banks. It is currently the second largest bank in Moldova. In 1995,
Victoriabank was reorganized with 60 percent of its shares held by foreign
investors, such as Danube Fund, Alpha Bank Romania (a member of the Greek
banking-financial Alpha Group), The European Bank for Reconstruction and
Development, and others. Victoriabank provides commercial as well
as retail banking services in Moldova through its 10 branch locations across
the country. Victoriabank was the first bank to issue international credit
cards in Moldova and is the only bank in the country that is an associate
member of VISA International and Europay/Master Card.
IFC’s 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 $31 billion of its own funds and arranged
$20 billion in syndications for 2,636 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY01 was $14.3 billion.
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