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€30 million to boost private residential mortgage lending
The European Bank for Reconstruction and Development (EBRD) is increasing the availability of long-term residential mortgage financing by providing €30 million loan to Banca Intesa A.D. Belgrade (BIB), the largest bank in Serbia.
The financing is being provided for on-lending to Serbian residents for private residential mortgages. The EBRD funds are offered at a time when the availability of credit, particularly on longer terms, remains constrained.
The EBRD’s mortgage loan will help Banca Intesa to grow its portfolio of mortgages to eligible homeowners using international best practice standards.
“We welcome the opportunity to continue our strong support for Serbia’s housing sector, which is in need of more financing. Our partners, Banca Intesa, represent an important source of funds for the real economy. We are pleased to be able to help Serbian families buy their homes,” said Dan Berg, EBRD Director for Serbia.
Henry Russell, EBRD Director for Financial Institutions in the Western Balkans, Belarus, Moldova and Ukraine, commented: “We are delighted to continue our cooperation with Banca Intesa. Building on the success of our previous cooperation, we believe that our new project will benefit the strongest player in the Serbian financial sector by helping Banca Intesa expand its range of services.”
“We are pleased to continue our cooperation with the EBRD. This loan will help us introduce a new product to our range and the project will support Serbian families by financing properties within the low to mid-value range,” said Draginja Djuric, president of Banca Intesa Executive Board.
BIB has established a reputation as a reliable partner of the EBRD in regard to small and medium-sized enterprises (SMEs) and energy efficiency facilities, and has also participated in the Women in Business programme. The mortgage line will be the first mortgage project that the EBRD has undertaken with BIB.
Since the start of its operations in Serbia, the EBRD has invested around €4 billion in over 190 projects across the country. The Bank invests in the financial sector, industry, commerce, agribusiness, energy and infrastructure.