Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

30 Sep 2003



PSD disclosed:

30 Jul 2003

Project Description

The proposed project is a credit line with a tenor of up to 12 years for up to €15 million to Postbank. The proceeds of the credit line will be used by Postbank to provide long-term mortgage loans to private individuals in Bulgaria for purchasing, constructing, renovating, repairing and/or remortgaging their real estates in Bulgaria. The mortgage loans will be denominated in EUR and/or BGN.

Transition Impact

The transition impact potential derives from the demonstration effect associated with supporting the growth of mortgage lending, which is relatively new and underdeveloped in Bulgaria. The facility will be structured in such a way that the underlying credit assessment procedures and documentation will allow subsequent refinancing of those receivables. The project will also contribute to the further development of the secondary mortgage market by ensuring the standardisation of the mortgage loan documentation and security, which can later facilitate mortgage bond issues or securitisation. The long-term finance will also have a positive impact on Postbank's balance sheet structure and increase the competition in longer-term lending.

The Client

Bulgarian Post Bank (Postbank) is one of the top five banks in Bulgaria with total assets of €370 million and equity of nearly €40 million at 2002 year-end. ALICO (a subsidiary of AIG) and EFG Eurobank Ergasias (Greece) jointly control more than 90% of Postbank's capital.

EBRD Finance

A senior loan with a tenor of up to 12 years for up to €15 million extended by the EBRD to Postbank.

Project Cost

€15 million.

Environmental Impact

The environmental risks associated with the operation and the potential portfolio are low. Postbank will need to ensure that property survey is conducted for each mortgage loan as part of the due diligence. The survey should include consideration of potential site contamination, use/presence of hazardous materials in construction, risk of flooding, or seismic activity and compliance with the applicable national environmental, health and safety standards and regulations.

Technical Cooperation


Company Contact

Mr Assen Yagodin
Member of the Management Board, Head of Treasury
Bulgarian Post Bank
1 Bulgaria Square
1048 Sofia
Phone: +359 2 963 4491
Fax: + 359 2 980 34 84
Email: yagodin@postbank.bg

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

Share this page: