The International Finance Corporation-IFC, the investment division of the World Bank, has concluded a funding contract with the MedLife company providing a 5 million euro loan for a ten year period, according to a joint press release. IFC also bought a 20% stake in the private health services provider for another five million euro.

One of the main reasons for the move is to take away the burden on Romania’s public health system and stimulate private health insurances, Guy Ellena, IFC director for Health and Education has said.

For his part, Mihai Marcu, MedLife general manager, said the funds will help the company eliminate the deficit of medical services on the Romanian market and turn into one of the main providers of such services in Romania.

MedLife is about to conclude works at the largest private hospital in Romania. The Memorial Hospital is built in Bucharest and benefits of the consulting services provided by IFC according to a 2005 contract. The company also plans to built hospitals and clinics in other major cities such as Constanta, Timisoara, Brasov, Iasi and Cluj-Napoca in the next three years.