IFC Helps Eurobank Increase Access to Finance for Smaller Businesses in Romania

IFC, a member of the World Bank Group, is providing a €58 million loan to Bancpost S.A. that will enable the bank to extend more loans to micro, small, and medium enterprises in Romania and help speed economic recovery. rnrnBancopost S.A. is a subsidiary of EFG Eurobank Ergasias S.A. in Greece. IFC’s support to EFG subsidiaries in Southeast Europe is part of the Joint International Financial Institution Action Plan launched in February 2009. In March 2010, Bancpost S.A. joined the IFC Global Trade Finance Program as an issuing bank to expand its trade finance operations as Romania rebounds from the global financial crisis. rnrn“A year ago, Eurobank EFG Group, together with international financial institutions, committed to support the economies of the region through the Vienna initiative,” said Giorgio Pradelli, General Manager of Eurobank EFG Group and Head of International Activities. “We are pleased to be collaborating with IFC once again to reinforce business growth in Romania.”rnrn“The loan signed today with Bancpost S.A. will help strengthen our cooperation and ensure a continuous flow of credit to smaller companies at a time when businesses continue to face difficulties in obtaining funding for their development,” said Dimitris Tsitsiragos, IFC Director for Middle East, North Africa, and Southern Europe. “Our partnership with EFG Group demonstrates our continuing commitment to the Romanian economy.” rnrnIFC is also providing a loan of €38 million to Eurobank EFG a.d. Beograd, an EFG subsidiary in Serbia. rnrnUnder the Joint International Financial Institution Action Plan, the World Bank Group, including IFC; the EBRD; and the European Investment Bank pledged to provide €24.5 billion over two years to support the economies of Eastern Europe through the banking sector. The financial support of these institutions is exceeding the initial target, as a total of €27 billion had been committed as of end-August 2010. rnrnAbout IFC rnrnIFC, 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.rn