IFC Provided a $5 Million Loan to Belgazprombank
In Washington:
Irina E.Likhacheva
Phone: +1 (202) 473 1813
Email: ilikhachova@ifc.org
Minsk, June 17, 2005 — The International
Finance Corporation (IFC), the private sector arm of the World Bank Group,
signed an agreement to provide a six-year $5 million loan to Joint Belarussian-Russian
JSC “Belgazprombank” for on-lending to private enterprises. Belgazprombank
is the second largest privately-owned commercial bank in Belarus.
The IFC loan will give Belgazprombank access to long-term funding which
is not available in the market from other sources and will help the bank
meet the increasing demand for term finance from its SME clients. IFC’s
funding will help the bank implement its expansion strategy and strengthen
its position in all market segments in which it currently operates, with
a particular focus on private small and micro enterprises. “The agreement
signed between Belgazprombank and IFC is a very positive sign, that reaffirms
Belgazprombank’s leading role in the Belarusian financial markets. This
investment opens additional opportunities for the bank and our clients,”
said Mr. Victor Babariko, the Chairman of Belgazprombank’s Board.
IFC’s strategy in Belarus is to foster the private sector development
through advisory services and lending operations. IFC’s loan to Belgazprombank
is a way for IFC to reach a larger number of private companies in Belarus
and to strengthen the country’s financial system. “IFC welcomes the opportunity
to provide Belgazprombank with long-term funding to help the bank diversify
and expand its loan portfolio. We hope that this investment will lay a
solid foundation for our future long-term work together and promote the
development of the small business sector, which is key for economic growth
and stability,” commented Mr. Edward Nassim, IFC’s director for Central
Eastern Europe, at the signing ceremony in Minsk.
Belgazprombank was established in 1989 as Bank Ekorazvitiye by a group
of private shareholders. It was renamed as Bank Olimp in 1993 and later,
in 1997, as Belgazprombank following the purchase of a majority stake (67.8%)
by the Gazprom Group. As of December 2004, the Bank’s assets are $100
and equity $18 million . Belgazprombank benefited from EBRD’s Institution
Building Plan and Technical Assistance program that focused on strengthening
the bank’s lending operations. This year, with donor support from the
Swedish International Development Agency (SIDA), IFC will also provide
consulting services to the bank on its general strategy and planning and
also on specific technical areas such as managing treasury risk and asset-liability.
“This is a good example for adding value to the Bank by combining a long
term investment with advisory services . Having high quality risk management
practices is an important success factor for the bank and we are grateful
to Sida for the support.” added Jyrki Koskelo, IFC’s Director for Global
Financial Markets.
The mission of IFC (www.ifc.org)
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, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.
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