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Europe, Middle East & North Africa


January 6, 2012 -- Bai-Tushum and Partners – the first microfinance institution in the Kyrgyz Republic to receive a deposit-taking license – launched its first savings products in September and has since opened more than 150 accounts for its cust
IFC, with support from Switzerland, helped improve the inspections process for Kyrgyz businesses by advising the Kyrgyz government on drafting amendments to the new Inspections Law, which was adopted in June.
Turan Bank was chosen as a pilot in the IFC Azerbaijan Corporate Governance Advisory Services Project implemented in partnership with SECO to provide in-depth advice to help align their corporate governance systems with best international practices.
The Investment Climate Advisory Services of the World Bank Group is assisting the government of Azerbaijan in tackling inspections reform through...
In Turkey, women-owned businesses represent nearly 40 percent of registered micro, small and medium enterprises, yet only 15 percent of them have access to formal finance

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Contact Information

Riham Mustafa
Corporate Relations
RMustafa@ifc.org

Strengthening Capital Markets

 

The financial and Eurozone crises and the recent troubles in emerging economies have led to high volatility in the Europe and Central Asia region (ECA), underscoring the value of strong local capital markets. In response, IFC is providing critical support to banking and financial sectors in the region, easing unemployment and ensuring that companies and individuals continue to have access to the financing they need. 

 

The World Bank Group announced in 2012 that it is making $27 billion in funding available over the next two years for countries of Emerging Europe and Central Asia. In case of market need and with a focus on supporting economic growth and job creation, IFC’s investment and advisory program in ECA could reach $10 billion of commitments in FY13-14 with approximately $8 billion for IFC’s own account and approximately $2 billion in mobilization.

 

Since 2011, IFC has invested more than $1 billion in 16 capital markets projects in ECA. These include short-term financing and trade products to address immediate liquidity concerns, mezzanine and equity investments to shore-up capital shortfalls, and strengthened SME financing to fill funding gaps. In some cases, IFC helps companies access domestic investors with groundbreaking deals. Last year, IFC invested $37.6 million in a $159 million local currency bond with Unicredit Romania, the first bond issued by a financial institution in Romania since the start of the financial crisis. IFC also helps companies access funding overseas, and served as an anchor investor in the $450 million Eurobond issued by Mersin International Port, Turkey’s first single asset infrastructure Eurobond. IFC also supported Russian infrastructure firm Brunswick Rail’s first Eurobond issue, a $600 million bond, for which IFC provided $25 million.

 

A coordinated IFI response provided critical support during the 2008 crisis and remains important today. IFC is working with other European institutions on a second Vienna Initiative which aims to ensure coordination between institutions and to avoid a messy deleveraging situation in Europe. IFC, along with other members of the World Bank Group, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD), recently launched the Joint IFI Action Plan 2013-2014 to support growth in Central and South Eastern Europe. As part of this initiative, IFC will support the private sector through its investments and advisory services in sectors including banking, infrastructure, manufacturing, agribusinesses, services and trade.

 

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 infrastructure, and protect against capital-flow shocks. Developing such markets is a cornerstone of our strategy and a priority for IFC.

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