IFC, a member of the World Bank Group, supported private sector growth in Europe and Central Asia throughout the past year, helping sustain economies and protect jobs amid an unprecedented global crisis.
During its fiscal year 2020, which ended on June 30, IFC invested around $2,5 billion in the region, including $1.1 billion mobilized from other investors, driving the diversification of the region’s economies, promoting inclusion, tackling climate change, and helping to lessen the impact of the pandemic.
IFC also supported $657.2 million of cross-border trade in the region through 25 banks participating in its global trade finance program. IFC implemented 74 advisory projects in the region, which focused on improving business regulations, working with the private sector to fight climate change, and helping local companies improve their corporate governance and environmental and social practices.
Georgina Baker, IFC Vice-President for Europe, Central Asia, Latin America, and the Caribbean, said: “Our clients face a difficult recovery, private investment is likely to remain subdued in many countries in Europe and Central Asia, and fiscal pressures will limit public spending. However, rebuilding after a crisis also brings opportunities. We will continue to focus on high-impact projects that can help address most pressing needs of economies, mitigate climate change, promote financial inclusion, and maintain and create jobs.”
To boost the green economy in the region:
- In Serbia, IFC closed the Belgrade Waste-to-energy project, which is replacing an old unsanitary landfill, reducing environmental damage, and using unavoidable waste as a resource to produce electricity and heat.
- Helped prepare the first solar tender in Uzbekistan, soon bringing renewable energy at a very competitive price to the country, and supported Armenia’s first grid-scale solar photovoltaic project.
- Closed IFC’s first-ever property-sector European green loan to build one million square meters of resource-efficient warehouses and commercial properties in Romania, supporting efforts to increase the country’s competitiveness and productivity.
- Helped launch Ukraine’s Energy Efficiency Fund, facilitating energy-efficient renovations of residential buildings in the country.
To increase access to finance and promote inclusion:
- With the support of the IDA Private Sector Window Local Currency Facility, IFC provided loans to two local financial institutions, Humo and Arvand in Tajikistan, to finance micro-housing projects and lend to microfinance customers.
- In Turkey, the reorganization put together an innovative facility for lending to MSMEs in the communities affected by the influx of Syrian refugees.
- In Ukraine, IFC reached an important milestone of helping small farmers get access to $1 billion worth of loans through “crop receipts”—an innovative financial instrument that allows farmers to maintain productivity and profitability.
To improve competitiveness and connectivity:
- Increased capacity of the Turkish port sector through an investment in a $600-million bond issued by Mersin International Port and a loan to Asya Port Liman A.S.
- Supported the development of Ukraine’s first Public-Private Partnership based on best international standards, to develop the Kherson Sea Commercial Port, as well as the structuring and tender process of the Sofia Airport concession.
Since the COVID-19 pandemic hit, IFC has focused its efforts on helping the private sector mitigate the economic fallout. In March, IFC announced $8 billion in global fast-track financing to help companies affected by the outbreak. In Europe and Central Asia.
Original source: IFC
Published on 11 August 2020
