Banca Comerciala Romana Mortgage Loan II



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

15 Nov 2005



PSD disclosed:

28 Sep 2004

Project Description

The proposed project is a senior loan to Banca Comerciala Romana (BCR), the largest commercial bank of Romania, to support development of long-term lending to individuals for real estate investment purposes. This project follows up on a previous Mortgage Loan I signed in January 2003 and successfully implemented by BCR. The proposed loan will be used in 2005/2006 for extending residential mortgage sub-loans to individuals from all over Romania.

Transition Impact

The transaction will support BCR in strengthening its position in the Romanian market by providing long-term financial resources to match its long-term mortgage lending. In this way, BCR will be able to continue building a mortgage portfolio of significant size so as to permit securitisation when market conditions will be appropriate and legislation will be in force. Mortgage lending is at a growth stage in Romania and the EBRD loan will increase provision of long-term funding available in the banking sector. It will allow an increasing number of people to access bank financing for purchasing, renovating and/or constructing residences.

The Client

BCR is the largest Romanian bank, with a 26% market share of total banking assets at June 2005, total assets of some EUR 7.3 billion, total equity of over EUR one billion and net profit of some EUR 123 million (RAS, unaudited). BCR is currently owned by the Romanian state (represented through AVAS) with a 36.8% share, by EBRD and IFC (each of them having a participation of 12.5% plus one share) and by 5 Romanian private investment funds (SIFs) and employees with a total shareholding of 38.2%. BCR is currently under privatisation with a deadline of 17 October 2005 for binding offers from the 9 reputable international investors.

EBRD Finance

EUR 50 million Credit Line in three tranches to BCR to be on-lent by BCR to private individuals as residential mortgage loans.

Project Cost

EUR 50 million.

Environmental Impact

BCR will continue to implement the EBRD’s Environmental Procedures for Residential Mortgage Lending for all mortgage loans under the credit line. The procedures require that a survey be undertaken for each loan considered to ensure, among other things, compliance with applicable national environmental, health, safety and public disclosure standards and regulations.

Technical Cooperation

BCR benefited for TC funding back in 2000-2003 funded by the EU under the SME Finance Facilities. No TC is proposed for this transaction.

Company Contact

Mrs. Cornelia Busca, Executive Manager

Phone: +40 21 310 27 85
Fax: +40 21 313 12 46


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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