IFIs and Private Sector Synergies Strengthen Development

Press Release | 22-Jun-2012

A joint report produced by 31 multilateral and bilateral development institutions on their cooperation with the private sector was presented during the Business Forum “Armenia: Opportunities for Growth and International Experiences”, organized by the Black Sea Trade and Development Bank (BSTDB) in Yerevan on June 22, 2012.

Sharing a common goal to support development, representatives of BSTDB, IFC, a member of the World Bank Group, EBRD, KfW (Germany), and Vnesheconombank (Russia) debated on the role of the international financial community in supporting development and employment creation.

The private sector is recognized as a critical engine for sustainable growth, poverty reduction and macroeconomic stability. International Finance Institutions (IFIs) play a significant role in catalyzing private sector involvement by encouraging entrepreneurial initiatives without burdening Governments and taxpayers. This role is becoming increasingly important for development institutions, along with traditional financing and programs provided for national governments.

The report International Finance Institutions and Development Through the Private Sector was initiated under the sponsorship of the Private Sector Development Institutions Roundtable, which is an annual meeting of the heads of IFIs focusing on private sector development, and was coordinated by IFC.

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The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is SDR 3 billion (appx. EUR 3.3 billion). BSTDB is rated long-term A by Standard and Poor’s and A3 by Moody’s.

About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.

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