IFC Helps Regional Russian Microfinance Institution Hedge Currency, Interest Rate Risks

In Moscow: 
Nezhdana Bukova  
Phone: +7 (495) 411 3986  
E-mail: NBukova@ifc.org 

In Washington, D.C.: 
Aliza Marcus 
Phone: (202) 473 8168 
E-mail: AMarcus@ifc.org 




Moscow, Russia, October 23, 2009—IFC, a member of the World Bank Group, is 
helping FORUS Bank, a regional microfinance institution in Russia, hedge 
currency and interest rate risks to make its microfinance operations more 
sustainable.  

IFC and FORUS Bank have executed currency and interest rate swap transactions 
for over $13 million, thus hedging the bank’s exposure to United States dollar, 
euro, and Russian ruble floating interest rates for a large part of its 
long-term international borrowings.  The two institutions signed the 
International Swaps and Derivatives Master Agreement on September 22—the first 
swap agreement signed by IFC in Russia. 

“I am pleased that FORUS Bank has successfully completed the swap transactions 
with IFC, allowing us to hedge interest rate and currency risks on about 40 
percent of our long-term liabilities,” said Stacie Schrader, Chairman of FORUS 
Bank’s Board of Directors. “They also will further stabilize the bank’s 
profitability while the Russian economy moves out of recession. I would like to 
thank our team and IFC for the timely completion of these transactions.”  

FORUS Bank serves micro and small businesses in Russia, reaching more than 
14,000 private entrepreneurs in 29 regions of the country.  The bank aims to 
meet the financial needs of its clients by creating credit-specific products, 
designing deposits that make it easier for entrepreneurs to save money for 
their business activity, and devising educational programs that help improve 
entrepreneurs’ level of financial awareness. 

“IFC’s strategy on financial market is to help banks improve their 
sustainability and mitigate risks, including currency and exchange rate risks 
arising from the financial turmoil,” said Snezana Stoilikovic, IFC Director for 
Central and Eastern Europe. “I am very pleased to finalize our first swap 
transaction in Russia with FORUS Bank, our long-term client. The availability 
of microfinance is critical for sustainable economic growth in Russia.” 

IFC is a leading global investor in microfinance with commitments of over $1.2 
billion. In fiscal 2009, IFC’s microfinance clients disbursed 12 million 
microloans totaling $16 billion. IFC’s focus is on creating and supporting 
commercially viable microfinance institutions that can attract private capital. 
IFC plays a catalytic role by demonstrating the business case for commercial 
microfinance, enhancing the sector with innovative financial products, and 
promoting it as an asset class. IFC is working to ensure that microfinance 
reaches the people and places where it is most needed.
 
About IFC 
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org. 

About FORUS Bank 
Closed Joint-Stock Company FORUS Bankis a bank for micro and small businesses. 
 It was founded by FORA Fund for Small Business Support, Russia’s largest 
microfinance organization.  The bank’s head office is located in Nizhny 
Novgorod, Russia, and it serves over 14,000 private entrepreneurs in 29 regions 
of Russia. FORUS Bank is a partner of Opportunity International network, MFC 
for Central and Eastern Europe, Russian Microfinance Centre, and is a member of 
the Association of Russian Banks. For more information, visit 
http://www.forusbank.ru/en/about/.