Vibrant, efficient domestic capital markets are the foundation for shared prosperity and lasting growth. They provide long-term funding for key economic sectors such as energy and infrastructure, and protect against capital-flow shocks. Developing such markets is a cornerstone of the World Bank Group’s strategy and a priority for IFC across Europe and Central Asia. In fiscal 2015, we invested nearly $800 million in the financial sector and capital markets across ECA, to bolster trade and access to finance.
We strengthened the financial sector and capital markets in South Caucasus, loaning $7 million to Azerbaijan’s TuranBank to encourage growth and boost its MSME portfolio, providing Bank of Georgia, the country’s largest bank, a $90 million subordinated loan to help expand access to finance, and issuing a 30-million-Georgian-lari bond (about $15 million at the time) as part of a 200-million-lari bond program to support Georgia’s capital markets.
In June, IFC issued an inaugural tranche of 100 million Turkish lira ($37.5 million) in lira-denominated discount notes, becoming the first multilateral institution to do so. Adding the lira to the IFC discount note program introduces a new asset class to investors seeking high-quality credit and short-term financing alternatives in the Turkish market. We also built a foundation for long-term stability for IFC microfinance lending in Central Asia by signing up the top micro finance institutions in Kazakhstan, Kyrgyz Republic, and Tajikistan for certification by the Smart Campaign, a global initiative to incorporate strong client protection principles across the microfinance industry. Finally, IFC and the Finance & Markets Global Practice launched the Western Balkans Debt Resolution and Business Exit Program to improve insolvency systems, reducing risk and boosting lending in Serbia, Albania, and Bosnia and Herzegovina.
Examples of What we Do: