International Finance Corp expands operations in Europe, Central Asia with $2.9-billion investment
International Finance Corp expands operations in Europe, Central Asia with $2.9-billion investment
Provided €107.7 million ($0.12 billion) to boost Serbia’s production of renewable energy through wind farms in financial year 2018, ended 30 june
New Delhi: International Finance Corporation (IFC), a member of the World Bank Group, on Tuesday said that it has expanded its operations in Europe and Central Asia with investment commitments that reached $2.9 billion.
This would drive the diversification of the region’s economies, promoting access to finance for small businesses and to tackle climate change, IFC said.
“The investments were geared at helping the region’s financial sector increase its loans to small- and medium-sized enterprises, support women-owned businesses, develop agribusiness and improve the region’s urban infrastructure,” it added.
According to IFC, which is focused on the private sector in emerging markets, it has also supported $1.8 billion of cross-border trade in the region through 28 banks participating in its global trade finance programme.
It has invested $2.26 billion from its account and mobilised another $0.68 billion from other investors during its financial year 2017-2018, which ended on June 30. It also provided €107.7 million to boost Serbia’s production of renewable energy through wind farms, IFC added.
Wiebke Schloemer, IFC’s director for Europe and Central Asia, said, “For the coming years IFC’s focus on the region will be on supporting the development of the fledgling private sector in some of the poorest and conflict-affected countries in the region while also continuing to work in middle income countries to promote innovation and competitiveness, energy efficiency and sustainable urban infrastructure.”
IFC’s largest commitments during the last fiscal year were Turkey ($1.1 billion), Romania ($336.4 million), Serbia ($190.5 million), Ukraine ($129.1 million) and Kazakhstan ($111.5 million).
Some landmark transactions include: $120 million in loans to increase the productivity of Ukraine’s agribusiness sector and helped establish a $150 million energy efficiency fund to modernise homes.
According to IFC, it had also implemented 79 advisory projects in Central Asia and Europe, which focused on improving business regulations, worked with the private sector to fight climate change and helped local companies improve their corporate governance, and environmental and social practices.
The global development institution added that during the next fiscal year, it would continue to focus on high-impact projects that could help mitigate climate change, promote financial inclusion and create new jobs.