BSTDB Supports Mortgage Financing in Russia

The Black Sea Trade and Development Bank (BSTDB) is providing a USD 40 million loan to the Russian Promsvyazbank for financing residential mortgage loans to private individuals. The maturity of the loan is seven years.

The operation will provide much-needed additional resources for the development of the mortgage market in Russia and respond to the Russian government priority to improve housing conditions.

Andrey Kondakov, BSTDB President, said: “We welcome this agreement aiming at improving living standards for Russian people. The BSTDB financing increases the accessibility of affordable long-term mortgage loans and also supports the residential real estate market and related industries in Russia”.

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Promsvyazbank (PSB), Moscow (founded in 1995) is one of the leading Russian private banks with total assets of RUB  777 bn and Basel I equity (capital) of RUB  95 bn under IFRS as at April 1, 2014. Promsvyaz Capital BV and the European Bank for Reconstruction and Development own, respectively, 88.25% and 11.75% in the bank. PSB has the following international credit ratings: ”BB-“/stable from Standard and Poor's, ”Ba3”/on review for downgrade Moody's Investors Service, ”BB–“/stable from Fitch Ratings, as well as an individual credit rating of “AA+” from National Rating Agency. As at April 1, 2014, PSB network in Russia accounts over 300 offices, as well as a branch in Cyprus and representative offices in Ukraine, China, India and Kazakhstan. www.psbank.ru

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 are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. www.bstdb.org.