Bucharest, Romania, July 7, 2022—Households in Romania will gain increased access to financial services with an IFC investment that aims to help individuals reduce their homes' carbon footprints,
IFC is providing a loan of €10 million in local currency to Garanti BBVA Consumer Finance, a key player in Romania's consumer finance market, to help the company grow its green loan portfolio while diversifying its funding base. This is a first loan to a consumer finance institution in the country.
IFC's support will help individuals to finance climate change mitigation measures such as electric and hybrid vehicles, e-scooters, e-bicycles, energy efficient A+++ energy class domestic appliances, and energy-efficient improvements for their houses and apartments, such as envelope insulation, energy efficient windows and roof-top solar photovoltaics (PV) panels.
Romania remains behind its European Union (EU) peers in terms of air quality, intensity of energy use, and waste management. Further, the Romanian economy consumes 2.5 times more energy per gross domestic product (GDP) unit than the average in the EU, with households accounting for 33 percent of the total energy consumption as of 2018.
A subsidiary of Türkiye Garanti BBVA (TGB), the company is regulated as a non-banking financial institution (NBFI) under the National Bank of Romania. While NBFIs are important players in the country's credit market, consumer lending is a growing segment in Romania.
"Climate change is a serious challenge to human existence and nature, and we cannot stand aside. The agreement with our long-term partner, IFC, will help us grow our green loan portfolio, thus supporting more Romanians and country`s climate goals," stated Tolga Banyocu, General Manager at Garanti BBVA Consumer Finance. "We are convinced that every input, no matter how minor, is essential for our future and the next generations."
In addition to investment, IFC will assist Garanti BBVA Consumer Finance to build-up company capacity and knowledge for development of green lending products by providing training in climate finance lending procedures as well as market analysis to help the company identify future opportunities.
"IFC is committed to helping Romania accelerate its green transition and this operation will help promote consumer finance as part of the available tools for climate financing," said Vittorio Di Bello, IFC's Regional Head of Industry for Financial Institutions in Europe. He added, "We hope to demonstrate how non-banking financial institutions can engage in this space, to help diversify product offerings in the financial sector and boost private sector growth."
IFC has supported private sector development in Romania for over 30 years, with a current committed exposure reaching $1,114 billion as of June 2021.
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 2021, IFC committed a record $31.5 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 the COVID-19 pandemic. For more information, visit www.ifc.org.
Stay Connected:
About Garanti BBVA Consumer Finance
Garanti BBVA Consumer Finance is part of the financial-group Garanti BBVA Romania, which brings together also Garanti BBVA and Garanti BBVA Leasing. Garanti BBVA Group Romania is held by Garanti BBVA Turkey (TGB), whose majority shareholder is the Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA). Incorporated in Romania as of 1997, Garanti BBVA Consumer Finance (the brand under which the company Ralfi IFN S.A. operates) is a non-bank financial institution that provides consumer finance. In recent years, Garanti BBVA has focused on green financing and launched in 2021 its first green loan for individuals planning sustainable acquisitions. For more information, visit
www.garantibbvacreditedeconsum.ro
https://www.facebook.com/GarantiBBVACreditedeConsum.ro
https://ro.linkedin.com/company/garanti-bbva-credite-de-consum
Contacts
Stay Informed
Sign up to have customizable news & updates sent to you.