Bucharest, Romania, January 29, 2019— IFC, a member of the World Bank Group, is providing a €55 million loan to Garanti Bank Romania to help finance small and medium-sized companies (SMEs) and their sustainable energy finance projects to generate growth and resilience to climate change.
This is the seventh agreement signed by Garanti Group Romania with IFC during the past seven years. Together with this line, since 2012, IFC has granted a total of €157 million to Garanti.
The new loan will allow Garanti to extend its reach to smaller companies. The level of financial intermediation in Romania is one of the lowest in the EU and yet has to fully recover from the global financial crisis. Enlarging financial intermediation is vital to sustain the flow of credit to SMEs, which are integral to Romania’s economy.
“We are proud to have visionary partners such as IFC together with whom we can deploy a solid strategy of supporting projects that bring added value to the community, not just to the economy. As innovators in the financial industry, we believe it is important to pave the way and support SMEs as well as companies that develop energy efficient projects or those that have adopted technologies based on renewable energy,” stated Ufuk Tandogan, CEO Garanti Bank.
Romania is highly exposed to floods and earthquakes, with past natural disasters resulting in billions of dollars in direct damage. Institutional reforms and recent investments have improved emergency response capacity, but the potential impact of disasters on infrastructure and the most vulnerable populations remains extremely high. As the climate warms, the severity, intensity, and frequency of storms, floods, droughts, wildfires, and extreme temperatures are increasing. Thus, there is an urgent need to build resilience against the impact of increasingly severe climate events.
“Strengthening Romania’s resilience to climate change through private sector projects and increased energy efficiency is essential for uninterrupted growth of the economy,” said Vittorio Di Bello, IFC Regional Industry Senior Manager. “Our partnership with Garanti Group Romania also ensures that smaller companies and entrepreneurs will continue to have access to the funds they need to grow and create jobs.”
IFC is a major international investor in the Romanian economy and an important supporter of private sector development globally.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
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About Garanti Bank Romania
Garanti Bank is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Finance (the brand under which Ralfi IFN operates). Being present in Romania since 1998, Garanti Bank has developed over time a solid and diverse client portfolio, and continuously expanded its national network and product portfolio for all business segments: retail, SME and corporate.
Last year, Garanti Bank was nominated as a Superbrand, distinguishing itself from over 1,500 brands analysed by Superbrands Romania. Furthermore, in August, Garanti Bank was awarded by world-renowned magazine Global Finance, as “Best Consumer Digital Bank in Romania”. The distinction was granted within the “2018 World's Best Consumer Digital Banks in Central and Eastern Europe Competition” and it is the 11th award that Garanti Bank received from Global Finance in the past ten years.
Garanti Bank Romania is held by Turkiye Garanti Bankasi AS (TGB), Turkey’s second largest private bank, with leading presence in all business lines and more than 16 million customers. The Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of TGB.
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