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IFC and Banca Transilvania Help Romanian Small Businesses Harness Trade Opportunities
IFC, a member of the World Bank Group, and Banca Transilvania are expanding their successful partnership by increasing financing available for small importers and exporters in Romania.
Through its Global Trade Finance Program, IFC is providing a $15 million trade credit line to Banca Transvilvania, which will enable the bank to provide additional funds to micro, small, and medium enterprises that rely on it to finance their international trade.
IFC’s Global Trade Finance Program supports trade in emerging markets by providing partial or full guarantees for individual trade transactions, backed by IFC’s triple-A rating. Since its inception in 2005, the program has issued more than 12,000 guarantees totaling $19 billion to banks. More than 80 percent of the guarantees benefited small and medium enterprises in developing countries.
“IFC is an important Banca Transilvania shareholder—and a strong supporter of our business strategy,” said Horia Ciorcilã, Chairman of Banca Transilvania’s Board of Directors. “Its Global Trade Finance Program will support and strengthen Romanian companies and reinforce the Romanian entrepreneurial spirit.”
Georgina Baker, IFC Director for Global Trade and Supply Chain Solutions, said: “Through the Global Trade Finance Program, IFC is able to channel funding to small businesses looking to tap new markets and grow their businesses. This additional support will open new international trade opportunities for local firms and stimulate economic development in Romania.”
IFC has held a 3.54 percent stake in Banca Transilvania since 2009, when it converted a $20 million subordinated convertible bond into equity. IFC also previously extended four senior loans and one subordinated loan to the bank.
In fiscal 2012, IFC provided $2.9 billion in guarantees to support trade in the world’s poorest countries, most of which supported small and medium enterprises. The program includes more than 260 partner banks in more than 90 emerging-market countries.