IFC, a member of the World Bank Group, is providing two loans totalling €32 million to Garanti Group Romania to help finance smaller businesses, with half the money earmarked for on-lending to companies owned or managed by women.
Garanti Bank Romania and Garanti Leasing Romania signed a €25 million and €7 million loan agreement with IFC in December 2017 and February 2018, respectively, to boost financial inclusion, especially for women entrepreneurs. Over the past six years, IFC has committed a total of €70 million to Garanti Group Romania, which includes banking and leasing services, to help finance SMEs.
“Entrepreneurship is an important engine that has boosted the development of the economy in Romania. We are active supporters of this sector in general, and of women entrepreneurs in particular, and we will continue to focus on being a solid trustworthy partner for our clients. Garanti’s strategy is aligned with IFC’s vision, as we have successfully collaborated over the past years. We are thereby glad to sign these new agreements and reinforce our mutual objectives and long-term commitment to the Romanian business community” said Ufuk Tandogan, CEO Garanti Group.
In line with IFC’s regional strategy, the financing will especially support companies that have women as shareholders or in top management positions. Currently, there are more than 480,000 companies in Romania where women are shareholders and play a decisive management role and around 165,000 companies that are wholly owned by women.
“Strengthening women’s participation in the Romanian private sector harnesses untapped potential for employment and economic growth,” said Thomas Lubeck, IFC Regional Manager for Central and Southeast Europe. “Our partnership with Garanti Group Romania ensures that smaller companies and women 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.
Original source: IFC
Published on 26 February 2018
