IFC Extends Funding to Raiffeisen Bank D.D. Bosnia I Herzegovina
Elika Trifonova
Phone: (202) 458 8357
Fax: (202) 974-4384
E-mail: Etrifonova@ifc.org
Sarajevo, January 14, 2003—The International
Finance Corporation (IFC), the private sector development arm of the World
Bank Group, has signed the first US$7.5 million tranche of a total facility
of $15 million to Raiffeisen Bank d.d. Bosna i Herzegovina (“RBBH”).
The proceeds of the line will be used by RBBH primarily to fund housing
loans to residents of Bosnia and Herzegovina as well as for lending to
small and medium size enterprises.
Mr. Karl Voltaire, IFC’s Director of Global Financial Markets, said “The
development of the financial sector in Bosnia and Herzegovina is a key
priority for IFC. The provision of this long-term credit line will further
stabilize, diversify and extend the maturity of the funding base of RBBH,
which would allow the bank to extend the tenor of its loans. The project
will improve the availability and affordability of housing loans in the
country and alleviate the dearth of term financing available to the private
sector.”
Mr. Edin Muftiæ, RBBH Chief Executive Officer, said: “Signing of the agreement
for this long-term credit line is the continuation of successful cooperation
between IFC and RBBH, including our partnership in the implementation of
projects which support the building and strengthening of the financial
market in the country. Among other things, RBBH established its position
and role in the banking sector and the economy of Bosnia and Herzegovina
through constant efforts to meet the requirements of its customers. Participation
in this project will make it possible for us to offer housing loans with
up to 12 years tenor, the offer of which is still very limited on the market
of banking products in the country.”
RBBH is a leading commercial bank in Bosnia and Herzegovina. The bank was
established in 1992 with privately contributed capital under the name Market
Banka. In July 2000, the Raiffeisen Zentralbank Österriech AG, Austria
(“RZB”) acquired a majority stake in the bank, which further strengthened
its operations. As of September 30, 2002 the bank’s assets reached $450
million equivalent and capital amounted to $26.3 million equivalent. RBBH
is headquartered in Sarajevo and has 12 branches throughout the country
and more than 500 employees.
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.
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