Bucharest, Romania, November 21, 2022—A new investment will help increase access to finance for green housing in Romania, including green mortgages and green home improvement loans, with IFC providing a €40 million loan to Garanti BBVA Romania (GBRO), supporting the country's climate goals.
In Romania, access to housing finance is still limited, and IFC's financing will help develop the green housing loan market. The residential housing market lags in green certifications while green housing finance is still at an early stage of growth. With IFC's support and global expertise, GBRO will be able to develop internal capacity and ramp-up the share of green housing in its overall portfolio.
According to estimates, over 95 percent of the buildings constructed before 2010 require energy-efficient refurbishing. To support the country's efforts to move towards a more sustainable future, the proceeds of IFC's loan will be used for green housing products while also helping reduce greenhouse-gas emissions.
"The current agreement with our long-term partner, IFC, is another proof of our commitment to bringing our contribution to nature's protection and well-being of society. An important direction in our strategy is educating clients about sustainable financing, and we will strive to increase customers' appetite for purchases that contribute to protecting the environment," said Mustafa Tiftikcioglu, CEO Garanti BBVA Romania.
IFC's long-standing partnership with the BBVA group in Romania started in the early 1990s and has continued over the years with impactful and successful projects. More recently, in June 2022, IFC provided a €10 million loan to Ralfi IFN S.A.—operating under Garanti BBVA Consumer Finance—to strengthen the company's green loan portfolio.
"One of our key priorities in Romania is to expand access to credit and the range of financial products available to support green investments," said Ary Naïm, IFC's Regional Manager for Central and Southeast Europe. "Green mortgages can incentivize the development and purchase of environmentally sustainable housing, which results in benefits for the environment but also for their owners, though better living standards and reduced utility bills."
IFC has supported private sector development in Romania for over 30 years, with a committed exposure reaching $1,274 billion as of August 2022, boosting the country`s green transition, digital and physical connectivity, and integration into global value-chains.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About Garanti BBVA
Garanti BBVA is part of the Garanti BBVA Romania Group, together with Garanti BBVA Leasing and Garanti BBVA Consumer Finance, which complete the bank's offer with specific leasing products, fleet management services, as well as consumer loans. Garanti BBVA România is owned by Garanti BBVA Turkey (TGB), the second largest private bank in Turkey. The majority shareholder of Garanti BBVA Turkey is the Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA).
For further information and to stay tuned, please visit the https://www.garantibbva.ro/ro/, and follow
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