IFC Provides 20 Million Euros to Banca Transilvania, Supporting Romania’s Housing Finance Sector
Georg Schmidt
Phone: +1 (202) 458 2934
Cell Phone: +1 (202) 294 4854
Fax: +1 (202) 974 4384
Email: Gschmidt@ifc.org
In Bucharest:
Ana Maria Mihaescu
Phone: +40 (21) 211 2866
Fax: +40 (21) 211 3141
Email: amihaescu@ifc.org
WASHINGTON, D.C./BUCHAREST, June 8, 2004
— The International Finance Corporation, the private sector arm of
the World Bank Group, will provide a 20 million Euro loan to Banca Transilvania
to help expand the emerging housing finance market in Romania. The agreement
was signed today in Bucharest by Peter Woicke, executive vice president
of IFC, and Robert C. Rekkers, chief executive officer, of Banca Transilvania
IFC’s funding will give further momentum to Banca Transilvania’s mortgage
lending operations, which currently exceed $60 million and account for
10 percent of the Romanian mortgage market. The new line of credit will
enable the bank to add over 2,000 residential mortgages with a maturity
of up to 15 years to its current portfolio of 7,000 mortgages. The project
will promote competition and strengthen mortgage finance in Romania. The
loan is part of IFC's wider strategy to develop housing finance through
increased mortgage origination.
Mr. Woicke said at the signing ceremony in Bucharest, "Financial market
development plays a central role in IFC’s strategy for Romania. We are
pleased to be involved in the introduction of new products such as mortgage
finance. In providing funding for the primary mortgage system, IFC will
not only make home purchasing more affordable, but also help increase the
depth and liquidity of Romania’s financial markets. In addition, the investment
will spur growth in the construction industry and related sectors.”
Mr. Rekkers noted, "We are very honored that IFC has become a strategic
partner for Banca Transilvania in providing financing for our mortgage
lending. Banca Transilvania is very optimistic about the future development
of Romania’s mortgage market. This is why we decided to be a major player
in this market segment. The new facility will help BT expand even further."
Khosrow Zamani, IFC's director for Southern Europe and Central Asia, added,
“In Romania, especially in areas outside urban centers, there is a great
demand for better quality housing. IFC’s mortgage loan addresses this
need directly and will help improve living standards. We hope that
the loan agreement marks the beginning of a long-term relationship with
Banca Transilvania.”
Established in 1993 by a group of entrepreneurs, Banca Transilvania is
the 12th-largest bank in Romania and the leading regional bank in the country,
offering a wide range of banking services to its more than 260,000 retail
and 50,000 corporate clients. As of December 2003, Banca Transilvania held
2.0 percent of the deposits and 2.5 percent of the loans of all Romanian
banks. It has a rapidly expanding network of over 80 branches and the nation’s
fourth-largest ATM system. Banca Transilvania is currently strengthening
its position through new mortgage and retail banking franchises.
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY03, IFC has committed more than $37
billion of its own funds and arranged $22 billion in syndications for 2,990
companies in 140 developing countries. IFC's worldwide committed portfolio
as of FY03 was $16.8 billion for its own account and $6.6 billion held
for participants in loan syndications.
|
