IFC INVESTS IN MICROFINANCE BANK IN ALBANIA
Brigid Janssen
Phone: (202) 458-4698
Fax: (202) 974-4384
E-mail: bjanssen@ifc.org
TIRANA, ALBANIA, July 19, 1999 – The President
of the World Bank Group, James D. Wolfensohn, today signed a shareholders
agreement for the International Finance Corporation to make an equity investment
of Albanian Lek140 million (approximately US$1 million) in FEFAD Bank,
a microfinance bank in Albania.
FEFAD Bank will stimulate development of microenterprises by providing
scarce medium- to long-term funding. At the same time, it will bolster
the financial sector by demonstrating that microfinance can be profitable
if it is targeted efficiently. FEFAD will also mobilize savings for
productive use in a country where confidence in the banking sector is still
fragile.
The high quality corporate governance and employees of FEFAD Bank should
serve as a role model to the Albanian financial sector and contribute to
its development.
Mr. Harold Rosen, IFC's Director for Central and Southern Europe, noted
that microenterprises account for the vast majority of Albanian employment,
exports and growth, even though they have little or no access to medium-
and long-term funding. The banking sector is involved almost exclusively
in deposit-taking and trade finance. He said that IFC is making an important
contribution to the future economic health of Albania by helping, through
this investment, to alleviate the funding constraint of small companies.
The mission of IFC, part of the World Bank Group, is to promote private
sector investment in developing countries, which will 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.
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