Washington D.C, September 24, 2002—The
International Finance Corporation, the private sector development arm of
the World Bank, continues its support for the development of small and
medium enterprises (SMEs) in Moldova with a credit line of US$1.5 million
to a local bank, Banca De Finante Si Comert (Fincombank) S.A, for
onlending to SMEs.
Fincombank is receiving substantial technical assistance from the
Netherlands Ministry of Foreign Affairs through its SME trust fund at IFC.
This assistance is aimed at strengthening
Fincombank’s banking skills and term lending expertise. Fincombank is
privately owned and regarded as a well-managed financial institution.
Mr. Khosrow Zamani, IFC’s Director for Southern Europe and Central Asia,
said: “The investment fits in with IFC’s strategy of supporting Moldovan
SMEs through similar financial intermediaries. The credit line and
the technical assistance will help Fincombank increase its support for
small and medium-sized Moldovan businesses. A strong and vibrant
SME sector is critical to Moldova’s economic development.”
IFC has played an active role in Moldova since the country became a member
in 1995. Since then, IFC has approved financing for investments in telecommunications,
agribusiness, electricity generation, banking and financial services, as
well as technical assistance projects in banking, tourism, wineries, food
processing, and leather industries. In banking, IFC provided a $3.0
million credit line to Moldinconbank, as well as a $4.0 million credit
line to Victoriabank, both for onlending to Moldovan small and medium-sized
Fincombank was established in 1993 as one of Moldova’s first commercial
banks. Today, Fincombank provides a range of corporate banking services
to leading Moldovan companies and international clients through its 20
branch offices (six in Chisinau). Fincombank has over 100 shareholders,
166 employees and over 9,600 clients.
“Through this investment, we hope to help Moldova in its efforts to create
sustainable banks and creditworthy private enterprises,” Mr. Zamani also
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 through the close of the last fiscal year on June 30, 2002, IFC
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 for our own account
and $6.5 billion held for participants in loan syndications.