Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

16 Nov 2004



PSD disclosed:

08 Oct 2004

Project Description

The proposed project is a credit line for up to €20 million in two tranches to BP to be on-lent by BP to private individuals in Romania as mortgage loans. The proceeds of the credit line will be used by BP to continue providing long-term financing to individuals for buying/constructing and/or repairing real estate properties (houses, flats, etc.). The sub-loans would be denominated in various currencies depending on customers' demand.

Transition Impact

Transition impact potential derives from the demonstration effect associated with supporting the growth of mortgage lending which is relatively new and currently rapidly growing in Romania. Development of a mortgage portfolio may also contribute to the development of financial markets by providing a source for possible long-term tradable securities (mortgage backed bonds, securitisation) in the future. Finally, further supporting the growth of BP and the diversification of its funding base will strengthen the banking sector by providing much needed long-term financing for individuals and thus increasing competition.

The Client

BP is one of the largest Romanian banks, with a 4 to 5% market share of total banking assets at end-2003. Total assets represented € 861.3 million, total equity € 115.9 million and net profit € 9.8 million (IAS) as of end-June 2004. BP is currently owned by Eurobank EFG (Greece) - 58.6% and GE Capital - 8.75%. At the same time, BP's employees and 5 Romanian private investment funds (SIFs) hold in total 33.6% of ownership.

EBRD Finance

A multi-currency loan for up to €20 million extended by the Bank to BP.

Project Cost

€20 million.

Environmental Impact

The environmental risks associated with the operation and the potential portfolio are low. BP is already implementing EBRD's environmental policy for local banks and EBRD’s environmental policy for mortgage loans. BP will need to ensure that property survey to be conducted for each loan as part of its 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

Ms. Maria Sultanoiu, Advisor to the President
Banc Post SA
Bucharest, Romania
Phone: +40 21 336 11 25
Fax: +40 21 336 11 25

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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