Project Description
The proposed project is a credit line for up to €20 million in three 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 provide long-term financing to individuals for buying/constructing and/or repairing real estate properties (houses, flats and the like). 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 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 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-2001, total assets of some US$ 514 million, total equity of some US$ 93 million and net profit of some US$ 5.3 million (IAS). BP's total assets increased to US$ 584 million (unaudited) as of end-2002. BP is currently owned by Eurobank EFG (Greece) - 36.25%, Banco Portuguese de Investimento (BPI) (Portugal) - 17% and by GE Capital - 8.75%. At the same time, BP's employees and 5 Romanian private investment funds (SIFs) hold in total 38% of BP.
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. 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
BP is presently benefiting from technical assistance granted by the EBRD and funded by EU/Phare under the SME Facility which is currently under implementation.
No technical assistance is envisaged for the proposed project.
Company Contact
Ms. Maria Sultanoiu
Personal Adviser to the President
Banc Post SA
Bucharest, Romania
Phone: +40 21 336 11 25
Fax: +40 21 336 11 25
E-mail:
Maria.Sultanoiu@bancpost.com
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
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Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.
