According to IFC website, the project consists of a senior loan of up to EUR55 million or its equivalent in Romanian Leu (RON) to an existing IFC client, Garanti Bank S.A., Romania (“Garanti Bank” or “the Bank”). The purpose of the loan is on-lending to small and medium enterprises in Romania, out of which, half must be allocated to funding eligible sustainable energy finance projects (“the Project”). The proposed investment is consistent with IFC’s strategy in Romania and would help a good existing IFC client to expand its SME reach with focus on mitigating climate change impact.

Expected high development impact will be derived from climate mitigation effect, since supporting expansion in the sustainable energy finance area will lead into a decrease in carbon dioxide (CO2) emissions. Additionally, the project is expected to lead into improved competitiveness in this segment, as IFC will be supporting the Bank to promote climate-smart products for the first time. Further impact is related to increasing access to finance for SMEs, an underserved segment of the market.

There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).

The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.

The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.

Garanti Bank S.A. provides retail and SME banking products and services. The company’s retail banking products and services include current accounts, saving accounts and deposits, loans, debit cards, overdrafts, senior packages, payments, and SEQR; and invoice payment, student pass package, piccolo package, direct debit, Western Union, interest rates, bancassurance, and tariff and commission services for retail customers.

No contact information provided at the time of disclosure. 

ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/