Press Releases

IFC Extends $5 Million Mortgage Loan to Credit Bank of Moscow

IFC, Washington

Irina E.Likhacheva

Phone: +1 (202) 473 1813


IFC, Moscow

Nezhdana Bukova

Phone:        +1(7 095) 411 7555

Fax:        +1(7 095) 411 7556


Credit Bank of Moscow

Vice President, Member of the Board

Mr. Andrey G. Ivanov,

Phone:        +1(7 095) 795-0230

Fax:        +1(7 095) 795-0274


Head, Financial Institutions

Mr. Andrey A. Butukhanov,
Phone:        (7 095) 795-0211

Fax:        (7 095) 945-8940


Moscow, July 8, 2005 — The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, signe an agreement today to provide a $5 million loan to Credit Bank of Moscow (CBM), a private Russian bank focused on small- and medium-size enterprises (SMEs), entrepreneurs, and retail clients.  IFC’s loan will support the expansion of the Bank’s mortgage lending program.  This loan is IFC’s second transaction with the Bank and builds on a partnership begun in 2004, when IFC extended a $10 million loan to the Bank for on-lending to SMEs.

To date, IFC has provided over $140 million in financing for development of the mortgage industry in Russia.  However, this is the first housing finance loan to a Russian-owned bank.  It is expected that CBM will also participate in the Russian Primary Mortgage Market Development project sponsored by IFC with an aim at improving industry standards.

“Housing finance is a key priority for IFC in the Russian financial market and we are excited to start working with Russian banks in this area.  While the financial market in Moscow is more developed than in other parts of Russia, demand for mortgage loans continues to be very high. We are pleased to support CBM’s mortgage lending program which will play an important role in raising living standards of Muscovites” -- commented Edward Nassim, IFC’s Director for Central and Eastern Europe.

Jyrki Koskelo, Director for Global Financial Markets Department said:  "IFC’s support to the Credit Bank of Moscow is consistent with our overall corporate strategy to work with credible mortgage loan originators to help increase access to long term and affordable housing finance in emerging markets.  At IFC, we recognize that housing finance is a key ingredient to wealth creation, as a home is the most important investment that most individuals make in their life time."   Mr. Koskelo added, " IFC's key development objective for housing finance is to foster development of strong primary markets that could eventually help to create a link to support financial and capital market development, through secondary mortgage market activities."  

Mr. Alexander L. Khrilev, Chairman of the Board - President of Credit Bank of Moscow, noted that: "We are delighted to further partner with such a reputable and experienced international institution as IFC.  Longer term funding is essential in addressing the needs of housing finance market.  Therefore our capabilities as a mortgage finance provider will be enhanced as we tap IFC's financial resources and expertise.  We believe the latter will provide valuable support for our new mortgage lending strategy.  Hopefully, this will prove to be another successful page in the history of our collaboration, and there will be more to follow."

Credit Bank of Moscow
was founded in 1992 and now ranks No.66 (by total assets and by equity) in Russia.  In October 2004, Moody’s Interfax upgraded CBM’s national scale rating to A3 (rus). In July 2004 Moody’s confirmed its E+ financial strength and B1/NP foreign currency deposit ratings. In April 2005, Fitch Ratings upgraded CBM’s national scale rating to BB+ form BB (rus) and affirmed the bank’s international ratings in June 2005.  Ros Business Consulting listed the bank as one of Top 3 Russian banks to provide consumer car loans in 2004. The Bank is also collaborating with EBRD on trade finance and SME lending ($10 million facility).  CBM’s operations are based in Moscow and the Moscow Region.


International Finance Corporation
( Russia joined IFC in 1993. Since then, IFC has committed $1.8 billion, including $200 million in syndicated loans, to finance 92 projects across a variety of sectors. To date, IFC’s portfolio in Russia stands at approximately $1.4 billion.  IFC’s investments spread across the country’s most important sectors including banking, leasing, housing finance, infrastructure, mining, agribusiness, pulp and paper, construction materials, oil and gas, telecommunications, information technologies, retail, and health care.

The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.  From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.