IFC Provides Trade Finance Support to Credit Bank of Moscow
Moscow, February 17, 2006 – The International Finance Corporation, the private sector arm of the World Bank Group, today announced that Credit Bank of Moscow, a private bank serving small and medium enterprises, is the first issuing bank in Russia to join IFC’s Global Trade Finance Program.
Under the agreement, Credit Bank of Moscow will receive an uncommitted trade finance line of up to $10 million. The bank will use this IFC guarantee to facilitate its trade finance operations worldwide.
The Global Trade Finance Program supports trade with emerging markets by supporting flows of goods and services to and from developing countries. IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks, as well as to enhance their trade finance service to their clients. IFC issued the program’s first guarantee in September 2005. Since then, IFC has issued guarantees in excess of $80 million in more than 80 transactions.
Edward Nassim, IFC’s Director for Central and Eastern Europe, said, “The Global Trade Finance Program is an important element of IFC’s strategy to support Russian banks that focus on small and medium enterprises. By guaranteeing trade transactions as small as $10,000, the program provides support for trading in consumer goods, smaller machinery, and commodities, items that smaller businesses particularly demand.”
This is IFC’s third project with the Credit Bank of Moscow, and it builds on a partnership that began in 2004.
Credit Bank of Moscow’s Chairman of the Board-President, Alexander L. Khrilev, said, “Since foreign trade is a vital part of many of our clients’ business, trade finance contributes significantly to Credit Bank of Moscow’s performance figures. Our achievements in this market are largely due to partnering with first-rate foreign banks and international financial institutions, including IFC, our valued partner in a number of other projects. Hopefully, participating in the Global Trade Finance Program will further expand the geographic reach and volume of our operations.”
Sabrina Borlini, IFC’s marketing officer for GTFP in Europe, said, "We are delighted to have Credit Bank of Moscow as the first Russian bank to join the Global Trade Finance Program. The program will increase the amount and range of import financing products that Credit Bank of Moscow can offer to its clients and will give the bank access to a global network of corresponding banks."
About Credit Bank of Moscow
Credit Bank of Moscow was founded in 1992 and today ranks 59th by total assets among Russian banks. Its operations are based in Moscow and the surrounding region. In 2005, Moody’s confirmed Credit Bank of Moscow’s E+ financial strength and B1/NP foreign currency deposit ratings. Fitch Ratings also upgraded Credit Bank of Moscow’s national scale rating to BB+ form BB (rus), and affirmed the bank’s international ratings in June 2005.
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit www.ifc.org.
Russia joined IFC in 1993. Since then IFC has invested $2.4 billion in the country, including $246 million in syndicated loans, in more than 100 projects across a variety of sectors. In FY05 (July 2004–June 2005), IFC’s investments in the country reached $832 million. IFC’s investment portfolio in Russia currently stands at $1.7 billion, making it the largest country exposure for IFC globally. IFC has invested in key sectors, including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care. For more information, visit www.ifc.org/europe.