Bank Republic Mortgage Loan

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The proposed project consists of an unsecured mortgage loan to Bank Republic of up to USD 8 million for a maturity of up to 6 years. The EBRD funds will be used to provide long-term financing to individuals for purchasing, constructing, renovating and/or re-mortgaging their real estate in Georgia. The Mortgage Loan and the associated TC will support Bank Republic in the expansion of its mortgage lending and improving its mortgage operations, including training of staff. The project will have a significant transition impact in the following areas: The Mortgage Loan provided by the EBRD to a Georgian commercial bank would support the development of the mortgage sector in Georgia, which is in the early stage of development. The Mortgage Loan will increase long-term funds available to a local bank, allowing increased competition in the market and an increasing number of people to access bank financing for purchasing, renovating and/or constructing residential property. The project will support Bank Republic in implementing best international practice in its mortgage operations and develop standardised mortgage products, ready for future securitisation. Bank Republic headquartered in Tbilisi is a privately owned universal commercial bank, the sixth largest in Georgia in terms of total assets (USD 118 million as of 31 December 2005) Up to USD 8 million unsecured mortgage credit line in two tranches of USD 4 million each, with individual tranche maturities of up to 6 years. USD 8 million. Bank Republic will be required to comply with EBRD’s Environmental Procedures for Residential Mortgage Lending, including ensuring compliance with the applicable national environmental, health, safety and labour standards and submission of annual environmental reports to the Bank. Bank Republic will be one of the beneficiaries of a TC funded by the ETC Multi-donor fund to improve Georgian Banks’ mortgage operations, including staff training. Lado Sakvarelidze, Deputy General Director Bank Republic 2 Gr. Abashidze St, 0179 Tbilisi, Georgia Telephone: +995 32 925555 E-mail: Lados@republic.com.ge