IFC APPROVES US$15 MILLION FOR EASTERN EUROPEAN AGENCY LINE
Amy Conran
Phone: (202) 473-9119
Fax: (202) 676-0365
WASHINGTON, D.C., June 10 -- The International
Finance Corporation (IFC) has approved an investment of US$15 million for
an agency line to co-finance small and medium sized companies in Estonia,
Latvia, Lithuania, and Poland.
"The expenses associated with evaluating and processing small investments
has prevented many international financial institutions from considering
investments in small and medium sized companies," said Mr. Edward
Nassim, Director of IFC's Europe Department. "This agency line will
provide financing for these smaller enterprises which serve as a vital
source of jobs, growth and exports in the region."
The Investment Fund for Central and Eastern Europe (IO), a fund established
by the Danish Government to support Danish investments in Central and Eastern
Europe, is the co-financier of the agency line. IO provides equity, medium-
and long-term loans, and guarantees on a commercial basis to promote economic,
commercial, and industrial development in Central and Eastern Europe.
IFC and IO will invest similar amounts in each project and expect combined
investments to range from US$1 million to US$6 million for each project.
Fifteen to 20 projects in the region are expected to benefit from the agency
line. IFC and IO will jointly choose the projects based on the viability
and soundness of the project proposals.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing
countries.
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