Garanti MSME

completed

The proposed IFC investment is a senior loan of up to EUR35 million to an existing IFC client – Garanti Bank S.A. Romania for the purpose of on-lending to micro small and medium enterprises, of which EUR20 million for on-lending to Women-Controlled MSMEs. The proposed Project supports IFC’s financial markets strategy in CSE and Romania as it makes a positive contribution by funding a priority sector, SMEs, with most part of the funds being earmarked for gender finance.Garanti Bank is a universal bank, with a market share as at Sep 2013 of 1.95% in terms of total assets (up from 0.45% market share in 2007), ranking 13th out of the 41 banks operating in Romania. In 2007, Garanti Bank Turkey and GE, shareholders of Garanti NV, decided to increase their presence in Romania through a direct subsidiary instead of a branch and positioned it to become a full-fledged bank focusing on retail and SME markets. The new bank license was authorized by the National Bank of Romania in 2009 and the Bank became operational at the end of May 2010.