Microfinance Bank Romania (MFR) is expected to be formed from the existing Microenterprise Credit Romania (MCR) and is jointly sponsored by IFC, EBRD, Kreditanstalt fur Wiederaufbau (KfW), Internationale Micro Investitionen (IMI) and Commerzbank. The technical partner is Internationale Projekt Consult (IPC).

IPC, the project technical partner, was established in 1980 in Germany, and is a leading international consulting and financial services company specializing in development and management of microfinance institutions. IFC has a global relationship with IPC, and is currently working with IPC in Bosnia, Georgia, Haiti, Moldova and Ukraine, among other countries. IMI was established by IPC in 1998, to provide an investment vehicle for IPC-managed microfinance ventures in developing and transition economies. IFC subscribed to a 16% stake in IMI in November 2000 for US$2.0 million equivalent. EBRD has successfully collaborated with IFC on microfinance projects in Albania, Bosnia, Moldova, Ukraine and Georgia. KfW is the German Government''s bilateral lending agency, and is a shareholder in IFC investee microfinance institutions FEFAD Bank (Albania), MEB (Bosnia), MFB (Ukraine) and MBG (Georgia). Commerzbank is Germany''s third-largest bank group, with a network of over 900 domestic branches and significant international operations in asset management, investment banking and insurance. As of Q1 2001, Commerzbank Group reported total assets of Euro 492.9 billion and equity of Euro 12.7 billion.

The total project cost is US$9.0 million. IFC’s proposed investment US$2.025 million equivalent for a 22.5% shareholding MFR.

2.03 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	2.03

* These investment figures are indicative

Like MCR, MFR will be headquartered in Bucharest with branches in Bucharest, Brasov, Cluj-Napoca and Timisoara. MFR plans to expand its branch network gradually in order to serve a nationwide micro and small enterprise target group market.

This is a category FI Type 1 project according to IFC’s environmental and social review procedure. IMI and project technical partner IPC have developed an environmental management framework to ensure that financial institutions in which IMI invests and IPC manage have appropriate Environmental Management Systems (EMS). IFC''s Environment Division has approved this environmental framework. Under the framework, IPC and IMI will guide MFR in the development and implementation of an EMS, requiring activities financed to comply with the applicable environmental, health and safety legislation and standards of Romania and IFC’s Microfinance Exclusion List. Implementation of the EMS may involve an orientation in cleaner production and a focus on clients presenting the greatest environmental risk and opportunities. MFR will provide an annual environmental performance report to IMI/IPC.
Location of environmental documents In locally affected community