|
EBRD signs two mortgage deals in Romania
EBRD supports competition in Romanian mortgage market
Bank lends HVB Bank Romania €10 million to meet surging demand for loans
The EBRD is lending HVB Bank Romania, one of the country’s most important
banks, €10 million to fund its mortgage programme to meet the growing demand
for housing loans across Romania.
The loan, the EBRD’s first to HVB Bank Romania and the fifth to Romania’s
banking sector, builds on the extraordinary success of the initial deals,
which have already enabled more than 8,600 people to become homeowners, many
of them for the first time.
Jean-Marc Peterschmitt, Director for Bank Lending at the EBRD, said there is a
clear demand for housing loans in Romania, and the EBRD, together with HVB
Bank Romania and other local commercial banks, is helping meet that demand.
Moreover, by supporting a number of local banks in their mortgage programmes
we are helping increase competition in this sector, which will ultimately
benefit local citizens, Mr Peterschmitt said.
Despite the value of mortgage loans in Romania reaching around €1 billion, one
of the biggest constraints is maturity of the available funds.
“The EBRD loan, granted for up to 12 years, will provide the long-term funding
we need to fuel the growth of our mortgage programme.. The development of
mortgage lending is very important to HVB and the bank aims to offer mortgage
loans of up to €100,000 to its private customers,” said Dan Pascariu, Chairman
of HVB Bank Romania.
HVB Bank started its activity in Romania in 1998 as a universal bank, under
the name of Bank Austria Creditanstalt Romania, the first Western financial
institution offering services for both corporate and private customers. The
bank is a member of the HVB Group and serves more than 25,000 clients through
12 branches in Bucharest (4), Timisoara, Oradea, Cluj, Brasov, Constanta,
Sibiu, Arad and Ploiesti.
The EBRD is the largest investor in Romania, having invested around €2.5
billion in 122 projects.
* * *
2nd loan to Bancpost to meet surging demand for home loans
The EBRD is lending Bancpost SA, one of Romania’s largest private banks, €20
million to support the surging demand for housing loans from local people
wanting to buy, build, renovate or repair their own homes.
The loan will expand on the success of a similar €20 million loan issued to
Bancpost on 14 May 2003, which has to date put home ownership within the reach
of some 2,000 individuals across the country.
In a country where the mortgage market is still nascent, demands for such
financing from individuals are growing substantially and it is important that
these demands are met, said Jean-Marc Peterschmitt, Director for Bank Lending
at the EBRD. We also hope this loan will support Bancpost’s efforts to build a
critical mass of mortgage loans in a standardised format which will open the
way for future securitisation of the portfolio, Mr Peterschmitt added.
Despite the value of mortgage loans in Romania reaching around €1 billion, one
of the biggest constraints is maturity. The lack of long-term finance acts as
a major obstacle, especially for Romanian banks.
Elena Petculescu, President of the Council of Administration of Bancpost,
said: “This loan, granted for up to 11 years, will provide the necessary
long-term funding needed to build on Bancpost’s mortgage lending programme.”
Bancpost’s CEO George Michelis added: “The development of this product is a
key factor for Bancpost and we intend to offer individual loans of up to
€100,000 in either Lei or hard currency (€ and/or USD) on competitive terms in
line with market conditions.”
Bancpost was formed as a state-owned entity in 1991 and privatised in 1999. It
is currently controlled by Greece’s EFG Eurobank Ergasias. This latest loan
builds on previous cooperation between the two institutions. In 1998, the EBRD
lent Bancpost $10 million as a subordinated convertible loan followed in 2002
by €10 million under a joint EU-EBRD SME facility to promote the growth of
small and medium-sized enterprises and by €20 million under a first mortgage
loan extended in 2003. All loans were fully disbursed and the conversion of
the subordinated loan is expected to take place very soon. The EBRD is the
largest investor in Romania having invested around €2.5 billion in 122
projects.
|
