Raiffeisen invests in mortgage company

Raiffeisen Bank Romania, Raiffeisen Bausparkasse, the Austrian group’s mortgage credit division, and German bank Schwabisch Hall will establish a mortgage credit company most likely until the beginning of next year. Raiffeisen Bank Romania’s investment in the new entity will be of at least 3.5 million euros, if the three institutions are to hold equal stakes. The minimal share capital the law requires for any mortgage credit company is 10 million euros, but the investment of the three will be larger. “We are considering the development of such a mortgage credit company, but it is too soon to be talking details. The housing credit market is interesting to us, is part of the parent group’s development policy for Romania and at the same time of Raiffeisen Bank Romania’s retail expansion policy,” Rasvan Radu, Raiffeisen Bank Romania VP in charge of the retail division told Ziarul Financiar. The operation of the new company is regulated by the law on savings banks in the housing domain. Anyone looking to buy, build or refurbish a home will be allowed to get a housing loan on condition that they should have deposited part of the credit as savings with this institution over 3 to 5 years first. ZF