BT MSME-Mortgage

completed

The proposed transaction consists of- a senior loan of up to EUR30 million equivalent comprising a EUR15 million 10-year tranche for mortgage on-lending and a EUR15 million 7-years MSME tranche and - a syndicated loan of a much larger amount for general business purposes.This project aims to work with a locally-owned bank and longstanding partner of IFC, Banca Transilvania (BT) in expanding access to long-term finance for key market segments that remain underserved despite the overall strides made by the Romanian banking sector. These market segments include low and middle income mortgages and the MSME segment, including those located in the frontier regions of Romania. Increasing access to finance in frontier regions, for the above mentioned market segments is key to upgrading the financial infrastructure in Romania which in turn will be crucial in aiding Romania’s integration within the EU, a cornerstone of the World Bank Group strategy.