IFC APPROVES US$ 7.3 MILLION FOR ESTABLISHMENT OF JSBC CREDITANSTALT UKRAINE

Brigid Janssen 
Phone: (202) 458-4698 
Fax: (202) 974-4384 
E-mail: bjanssen@ifc.org  




WASHINGTON, D.C. May 11, 1998 - The International Finance Corporation signed an 
investment agreement on May 10 to support the creation of a new commercial 
bank, JSCB Creditanstalt Ukraine, that will provide a comprehensive range of 
services to international corporate and institutional customers and local 
exporters.  The investment will help strengthen trade and business relations 
between Ukraine and western and central Europe. 

IFC will take an equity stake of 20 percent for US$2.3 million in Creditanstalt 
Ukraine and extend a five-year credit line of US$5 million.  The bank will use 
IFC financing to provide commercial banking products including working capital, 
trade finance and equipment acquisition for Ukrainian enterprises. The bank 
will be involved in project finance, trade finance, corporate lending, 
treasury, custodian business and foreign exchange operations and international 
payment services. 

Mr. Edward Nassim, Director of IFC's Europe II Department, noted that a strong 
private financial sector is the basis for economic growth in Ukraine. He said 
that Creditanstalt Ukraine, a well-capitalized and professionally managed bank, 
would assist Ukraine in meeting the need for strong financial intermediaries to 
support international trade and business flows by providing modern and 
efficient banking services. 

Creditanstalt Ukraine is a joint-venture bank between Creditanstalt AG Vienna, 
Bank Aval of Ukraine and IFC.  Since 1997 Creditanstalt has been a part of the 
Bank Austria Group, the largest banking group in Austria with aggregated total 
assets of US$124 billion.  The Bank Austria – Creditanstalt Group has the 
most extensive network of any western bank in central and eastern Europe.   
Bank Aval, one of the largest private banks in Ukraine, with strong links to 
much of the Ukrainian corporate sector, will support the development of the 
Bank's marketing activities. 

IFC's activities in Ukraine draw on a strong local presence to provide a 
combination of direct investments and technical assistance on small-scale and 
mass 
privatization, support for small and medium-sized private enterprises and land 
reform. To date, IFC has approved four investments (including Creditanstalt 
Ukraine) totaling US$ 27.3 million in the country. The Corporation looks 
forward to increasing the scope of its activities in Ukraine and elsewhere in 
the region. 

IFC, a member of the World Bank Group, fosters economic growth in the 
developing world by financing private sector investments, mobilizing capital in 
the international financial markets and providing technical assistance and 
advice to governments and businesses. 

For further information please contact: 

Alyona Voloshina, IFC Kiev 
Tel: 380-44-293-8374 
e-mail: voloshina@ifc-gw.kar.net 

Laurence Carter, IFC 
Tel: 202-473-1454 
E-mail: lcarter@ifc.org