IFC, the private sector arm of the World Bank Group, will provide a seven-year loan to Romania's Credit Europe Bank to support the bank's expansion into small and medium enterprises and strengthen its balance sheet by providing local currency funding with a longer tenor than currently available in the local market.
The $26 million equivalent investment will be the first local currency loan offered by IFC in the Romanian market. As an internationally triple-A rated institution, IFC leverages its credit to provide customized local currency products to private sector clients.
Tamer Ozatakul, General Manager of Credit Europe Bank, said, "In 2006 we took the first step to address all segments of the Romanian economy by establishing our SME banking unit. The facility, granted by IFC, will help us develop our SME client base and better meet their needs by providing medium-term local currency loans. We hope that our role will continue to grow in serving the SME sector, which is an important engine for growth in Romania."
Ana Maria Mihaescu, IFC Chief of Mission in Romania, said, "This loan is a sign of IFC's commitment to Romania and its innovative approach to serving market needs, particularly the financial sector, which is key for economic development. This local currency loan will strengthen the banking system in Romania, while enabling Credit Europe Bank to increase services to the underserved SME sector."
Source: IFC
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