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Mortgage credit line extended to Raiffeisenbank Ukraine
The EBRD is extending a $10 million mortgage credit line to Raiffeisenbank
Ukraine to support the fast-growing Ukrainian mortgage market. Half of the
loan is expected to be syndicated internationally. It is the second
transaction under a $30 million framework set up by the EBRD last year.
With domestic mortgage market growth topping 84 per cent in 2004, the sector
has become increasingly attractive for local commercial banks. However, the
absence of long-term funding and the low capitalisation of the Ukrainian
banking sector increase the risks for sustainable growth of mortgage
financing. The mortgage credit line to Raiffeisenbank Ukraine will help
channel long-term financing to individual borrowers for buying, building or
renovating their homes.
EBRD financing will support Raiffeisenbank Ukraine strategy to turn into a
bank serving all segments of the market and, in particular, to become one of
the leaders in retail banking.
The EBRD’s assistance for development of mortgage finance should have a
significant economic and social impact through support for wider home
ownership and improvement of housing conditions for the population, in line
with the Bank’s new strategy for Ukraine. It should also help increase
competition among local banks in this market, as well as develop specialised
financial products
The Bank’s cumulative investments in Ukraine stand at €1.7 billion through 67
projects.
Press contact:
Anton Usov, Kiev - Tel: +380 44 270 6132;
E-mail: usova@ebrd.com
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