EBRD and IMB Group continue support to consumer finance in Ukraine

 

Kyiv, December 19, 2007. The EBRD is providing a $20 million loan to International Mortgage Bank (IMB), a specialised mortgage and consumer finance institution in Ukraine. The loan will provide medium-term funding to assist the development of the bank’s consumer finance business.

 

With annual increase of nearly 100 per cent and an overall volume of approximately $6.8bn, consumer lending is one of the newest and the fastest growing segments of the Ukrainian financial sector. Therefore, it is very important for EBRD to support professional specialised consumer finance institutions in Ukraine in order to increase the range and affordability of products they offer to customers and promote best international lending practices, in such areas as risk management and information disclosure. The new loan facility will reinforce EBRD’s efforts at increasing the standards of operation of consumer finance sector in Ukraine.

 

According to EBRD Ukraine Director Kamen Zahariev, the Bank’s long-term strategy is to create a strong and transparent legal framework in consumer lending which, coupled with a substantial portfolio, will eventually allow the development of capital markets in Ukraine. “We are convinced that our financing to IMB, which has strong management with excellent experience in the industry, will help them to secure leading positions in this sector,” he added.

 

Todd Esposito, IMB Group CFO and Management Board Member of IMB added:”Working with an organization such as EBRD adds credibility to IMB Group’s focus on retail bank and consumer lending in Ukraine. IMB is expanding its presence throughout Ukraine in 2007 and 2008 and will use the funds toward growth of its sales finance portfolio.”

 

The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of the end November 2007 it had committed over €3.12 billion through more than 156 projects.

 

###

 

The EBRD, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from central Europe to central Asia. Visit the EBRD’s website: www.ebrd.com

 

IMB Group Public Limited (IMB Group) is Ukraine’s leading consumer finance company that is focused on offering loans to retail customers. IMB Group operates under the brand names International Mortgage Bank (IMB) and Family Credit. Combined, these companies offer mortgages, Point of Sale loans, personal loans, and deposits to customers. Both IMB and Family Credit are 100% owned by IMB Group. The main shareholders of IMB Group are Horizon Capital, Warburg Pincus and East Capital with Warrants being traded on the Vienna Stock Exchange and global depositary receipts (GDRs) held with Bank of New York/Mellon