Stopanska Banka Privatization

completed

Summary Of Project Information (SPI)Project NameFYR Macedonia - Stopanska Banka Privatization     RegionEuropeSectorProject No007488Projected Board DateDecember 18, 1997Company NameStopanska BankaTechnical Partner and/or Major Shareholders Erste Bank (Vienna) 25% IFC & EBRD: 15% eachProject Cost Including proposed IFC investment Project cost:DEM 60 million; IFC Equity Investment: DEM 9 million; IFC Loan: DEM 20 millionLocation of project and Description of site Former Yugoslav Republic of Macedonia 20 branches across the countryDescription of Company and Purpose of Project(include IFC’s Role and Development Impact) Stopanska Banka (SB) is FYR Macedonia’s largest Bank and represents about 40% of the banking assets of the country. SB, which is controlled by the state, is in very poor financial condition and lacks corporate governance. IFC was asked by the government to find a strategic investor group to privatize and take control of SB, in order to develop the Bank, provide corporate governance and resume creditworthy on-lending to private sector companies and entrepreneurs in FYR Macedonia that are in acute need for financing.Environmental Category and Issues This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. Stopanska Banka will be required to undertake an environmental review of each sub-project. In addition, IFC will assess Stopanska Banka''s capability to carry out environmental reviews.Date SPI sent to PIC November 11, 1997“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384