Bucharest, Romania, June 7, 2017–IFC,
a member of the World Bank Group, is providing a €50 million loan to Alpha
Bank Romania to support mortgage lending and help expand access to finance
for prospective home owners in Romania.
Alpha Bank Romania, an existing IFC client and a Company of the Alpha Bank
Group, one of the leading Groups of the financial sector in Greece, became
the first bank to introduce mortgages in Romania in 2001 and is now one
of the major mortgage lenders in the country, with a portfolio that exceeds
€1 billion. IFC's financing is expected to help the lender reach out to
a greater number of homeowners and further develop the local market.
“The additional funds for mortgage lending will enable us to better support
the needs of our Clients in a market where the demand is growing on a yearly
basis,” said Periklis Voulgaris, Executive Vice President of Alpha Bank
Romania. “This arrangement will further strengthen our competitiveness
and market position.”
One of IFC’s priorities in Romania is to strengthen the local financial
system by helping banks provide affordable and sustainable opportunities
to increase financial inclusion.
Romania’s housing finance system could contribute more to economic growth
than it presently does. The country’s 7 percent ratio of outstanding residential
mortgage debt to gross domestic product is the lowest among EU countries.
The average for the 28-member block is 50 percent.
“IFC’s new loan will further consolidate our partnership with Alpha Bank
Romania and will allow the bank to expand its housing portfolio and help
its clients to become homeowners,” said Manuel Reyes-Retana, IFC Regional
Head for Financial Institutions Group in Europe, Middle East and North
Africa. “By boosting Alpha Bank’s capacity to increase mortgage lending
we are also contributing to a healthy cycle of domestically driven employment,
growth, and savings.”
In 2015, IFC extended a $30 million credit trade line to Alpha Bank Romania
under the Global Trade Finance Program, which supports trade in emerging
markets by providing partial or full guarantees for individual trade transactions
backed by IFC’s triple-A rating.
Since its EU accession, Romania’s economic growth has contributed significantly
to reducing poverty. However, the expanded financial intermediation is
needed to support access to credit for individuals and small businesses
that make up the most critical segment of the economy.
About Alpha Bank Romania S.A.
Alpha Bank Romania, member of the Alpha Bank Group, is a leading financial
institution, active in the Romanian market for more than 20 years. The
Bank offers a diverse and modern range of services and products, both for
the retail and the corporate market. For more information, please visit
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org