Victoriabank II

completed

The project is to provide Victoriabank (VB or the bank), Moldova’s 3rd largest commercial bank, with a $5 million loan for IFC’s own account. The loan would have a final maturity of seven years and will be used by the bank for on lending to private Moldovan enterprises, including those operating in the housing sector. Over the last couple of years the recovery of Moldovan economy has led to the rising demand for housing. Generally the country is faced with the low quality of the existing housing stock, increased housing deficit, and a low housing affordability. Recently this situation translated into a lot of construction starts and rising real estate prices due to the increased purchasing power of the population and unmet demand for quality dwelling. Concurrently, Victoriabank began lending to real estate developers and extending housing loans to individuals. The bank is planning to continue developing this business line. However, the local banking sector is still facing difficulties in accessing long term funding. By extending a seven-year loan to VB, IFC could provide Moldovan companies and individuals with much needed financing of longer tenor. The proposed project would complement IFC’s support to Moldovan SMEs channeled through projects with Moldinconbank, Fincombank and Victoriabank.