BSTDB LAUNCHES MORTGAGE FINANCING IN RUSSIA

Press Release | 23-Nov-2006

BSTDB has provided Absolut Bank of Russia with a USD $15 million 6-year bank to bank loan for mortgage financing. Absolut Bank will use the facility to provide mortgage loans to private individuals in Russia for buying, constructing and renovating their residences in Moscow and St. Petersburg.

The importance of the operation arises from supporting development of the mortgage market, which is still nascent in Russia and responds to the Russian government priority to provide people with opportunities to improve their housing conditions. Correspondingly, mortgage market growth positively affects housing and construction spreading its development impact in important complementary sectors benefiting employment and production.

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Absolut Bank was established in 1993 as a universal bank by a group of private entrepreneurs. Currently, Absolut Bank is a medium-sized private bank targeting growth in retail, mortgage and SME lending. Absolut Bank is partly owned and strongly supported by reputable international financial institution.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1,47 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 by Moody’s.