|
Washington, DC / Istanbul, June 22, 2007
— IFC, the private sector arm of the World Bank Group, today signed an agreement with Banka Kombëtare Tregetare to help the bank strengthen its housing finance operations. The 20 million euro loan will boost the emerging housing finance market in Albania and promote competition, an important part of IFC's program to support overall development of the country’s mortgage market.
This investment is part of IFC's broader strategy to develop housing finance through increased mortgage origination in Albania and other emerging economies in the region.
“This important transaction elevates our successful, long-term partnership with IFC to another level. The loan has very competitive terms as compared to borrowing conditions for Albanian companies at the international market. The investment, combined with IFC’s advisory services, is very valuable for Albania, where the primary mortgage market is in its early stages of development and the secondary market is nonexistent,” said Seyhan Pencapligil, CEO of Banka Kombëtare Tregetare, at the signing in Istanbul.
"Financial market development is a key part of IFC’s strategy for Albania, and we are pleased to help introduce new products such as mortgage finance. By providing funding for the primary mortgage system, IFC will not only make home purchasing more affordable, but will also help increase the depth and liquidity of the country’s financial markets. The investment will also support growth in the construction industry and related sectors,” said Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia.
In addition, IFC will provide advisory services to Banka Kombëtare Tregetare to help standardize its mortgage credit and operations, using the IFC Mortgage Market Toolkit. IFC will also support Albania’s regulatory authorities in improving the legal framework, enabling a better environment for housing finance operations.
About IFC
IFC, the private sector arm of the World Bank Group, promotes open and competitive markets in developing countries. IFC supports sustainable private sector companies and other partners in generating productive jobs and delivering basic services, so that people have opportunities to escape poverty and improve their lives. Through FY06, IFC Financial Products has committed more than $56 billion in funding for private sector investments and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. IFC Advisory Services and donor partners have provided more than $1 billion in program support to build small enterprises, to accelerate private participation in infrastructure, to improve the business-enabling environment, to increase access to finance, and to strengthen environmental and social sustainability. For more information, please visit
www.ifc.org
.
About Banka Kombëtare Tregetare
Banka Kombëtare Tregetare is a commercial bank in Albania with total assets of about 700 million euros. It is the second-largest bank in the country, with a network of 36 branches in 18 cities. In 2006, it was selected as the “Bank of the Year 2006” by The Banker magazine. The bank’s shareholders comprise Calik/Seker Consortium (60 percent), the European Bank for Reconstruction and Development (20 percent), and IFC (20 percent). The bank, which is active in the retail business, is expanding regionally, opening its first branch abroad in Pristina in July 2007. For more information, please visit
www.bkt.com.al
.
|
