DELTACREDIT MORTGAGE FINANCE

Location:

Russia

Project number:

15145

Business sector:

Non-depository Credit (non bank)

Notice type:

Private

Environmental category:

FI

Target board date:

15 Jan 2002

Status:

Completed

PSD disclosed:

26 Oct 2001

Project Description

The EBRD proposes to lend €22.2 million to DeltaCredit Bank, Russia which will make residential mortgage finance available to individuals in Russia. The project will support DeltaCredit Bank’s efforts to develop its mortgage loan business by providing on-lending funds for the expansion phase. Eligible borrowers will be able to obtain long-term financing to purchase residential property in Russia.

Transition Impact

The development of mortgage finance for private individuals is an important element of transition to a market economy. A thriving mortgage market can assist the growth of a Russian middle class and can act as a model for similar projects in the financial sector by supporting the advance of this fundamental retail banking product. In terms of development of financial markets, mortgage finance is a key element both as a core, reliable banking asset and as an instrument for securitisation.

The Client

DeltaCredit Bank, Russia is the newly established residential mortgage vehicle of the US-Russia Investment Fund (TUSRIF).

EBRD Finance

Loan of US$ 20 million (€22.2 million).

Project Cost

US$ 20 million (€22.2 million).

Environmental Impact

The project has been classified as a financial intermediary (FI). The environmental risks associated with the operation and the potential portfolio are low. DeltaCredit Bank will need to ensure that an issue of potential site contamination and compliance with the applicable national environmental, health and safety standards are included in the set of criteria when assessing the quality of collateral for the mortgage loans.

Technical Cooperation

None.

Company Contact

 

Business opportunities

For business opportunities or procurement, contact the client company.

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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.