Romanian American Enterprise Fund (Small Business Lending Program)

completed

Summary Of Project Information (SPI)Project NameRomania - Small Business Lending ProgramRegionCentral EuropeSectorProject No007760Projected Board DateSeptember 30, 1997Company NameRomanian-American Small Business Lenders Ltd.Technical Partner and/or Major Shareholders The technical partner will be Shorebank of Chicago, an acknowledged leader in the design of small business lending programs.Project Cost Including proposed IFC investment US$10 million initially, but expected to reach US$20 million over time.Location of project and Description of site Borrowing Romanian enterprises will be identified in the future; their locations will be in Romania.Description of Company and Purpose of Project The project consists of providing medium-term loans to small businesses in Romania through an offshore Special Purpose Vehicle to which IFC and the Romanian-American Enterprise Fund will lend US$5 million each. The purpose of the project is to provide small, private Romanian businesses with loans of tenor currently not offered by Romanian financial institutions. The project thus helps fill an important gap in the provision of medium-term loans by the Romanian financial sector. It is expected to have a strong developmental impact on Romania’s incipient private sector. In addition, up to four participating local banks will receive training in small business lending.Environmental Category and Issues This is a financial intermediary (category FI) project according to IFC’s environmental review procedure. The project manager on the ground will be required to review eligible borrowers’ operations and the environmental impact of each sub-project. Each sub-project must comply with relevant host country environmental, health and safety requirements and applicable World Bank/IFC policies and guidelines.Date SPI sent to PIC August 20, 1997For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384P:\PIC\ROS07760.DOCAugust 20, 1997 10:37 AM