BANCA COMERCIALA ROMANA MORTGAGE LOAN

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 29023

Status Complete

Location

Romania

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 29023

Status Complete

Location

Romania

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

05 Nov 2002

Disclosure date

16 Sep 2002

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A proposed senior loan to Banca Comerciala Romana (BCR), the largest commercial bank of Romania, to support enhancement of long-term lending to individuals and domestic private companies for real estate investment purposes. This project is additional to BCR SME Facility, which has been implemented by BCR since January 2001.

The proceeds of the credit line would be used by BCR to provide long-term financing to individuals or legal entities, for buying/ constructing and/or repairing real estate properties (houses, offices, flats and the like). The sub-loans would be in Lei and/or other type of lending.

Transition Impact

Transition impact potential derives from the demonstration effect associated with supporting the growth of mortgage lending which is relatively new and currently underdeveloped in Romania. Development of a mortgage market would also contribute to the development of financial markets by providing possible long-term tradable securities in the future. Supporting the growth of BCR and the diversification of its funding base will strengthen the banking sector by providing much-needed long-term financing for individual and private domestic legal entities and increasing competition.

The Client

BCR is the largest Romanian bank, with a 31% market share of total banking assets at end-2001, total assets of some USD 3.7 billion, total equity of some USD 709 million and net profit of some USD 130 million (IAS). BCR is currently owned by the Romanian state (represented through APAPS) for 70% and by 5 Romanian private investment funds (SIFs) with a total shareholding of 30%. BCR is currently under privatisation with a deadline of July 2003.

EBRD Finance

Up to €50 million credit line in three tranches to BCR to be on-lent by BCR to private individuals and legal entities as mortgage loans.

Project Cost

€50 million.

Environmental Impact

The environmental impact from the project will be low as the borrower is committed to comply with the financing restrictions stated on EBRD’s Environmental Exclusion List for Financial Institutions as well as with EBRD’s Environmental procedures for Intermediate Financing through Local Banks.

Technical Cooperation

None.

Company Contact

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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