ProCredit Bank Bulgaria, a microfinance institution (MFI) and member of Germany’s ProCredit Holding, recently launched a housing lending program for clients purchasing homes and refinancing existing home loans. Although the interest rates are not specified, the bank offers lower fixed interest rates and application fee waivers for borrowers who opt to make energy-efficient improvements in their homes. The maximum repayment period is 25 years and the bank offers a grace period for the first 12 months [1].
For the year 2011, ProCredit Bank Bulgaria reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 845 million, a gross loan portfolio of USD 684 million, deposits of USD 576 million, return on assets (ROA) of 0.72 percent and return on equity (ROE) of 6.58 percent. The number of active borrowers and depositors is not available. For the year 2011, ProCredit Holding, which has operations in 21 countries, reported total assets of EUR 5.49 billion (USD 7.18 billion), a gross loan portfolio of EUR 4.03 billion (USD 5.27 billion), 2.92 million borrowers, customer deposits of USD 3.42 billion, 3.65 million deposit accounts and return on equity (ROE) of 10.4 percent [2].
By Brendan Millan, Research Associate
About ProCredit Bank Bulgaria
Established in 2001, ProCredit Bank Bulgaria is a development-oriented bank specializing in serving micro-, small and medium-sized Bulgarian enterprises. The bank is a member of ProCredit Holding, a Germany-based development banking group. For the year 2011, ProCredit Bank Bulgaria reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 845 million, a gross loan portfolio of USD 684 million, deposits of USD 576 million, return on assets (ROA) of 0.72 percent and return on equity (ROE) of 6.58 percent. The number of active borrowers and depositors is not available.
About ProCredit Holding
Headquartered in Germany, ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. ProCredit’s core business is the provision of credit and other financial services to very small, small and medium-sized enterprises as well as lower- and middle-income savers. For the year 2011, ProCredit reported total assets of EUR 5.49 billion (USD 7.18 billion), a gross loan portfolio of EUR 4.03 billion (USD 5.27 billion), 2.92 million borowers, customer deposits of USD 3.42 billion, 3.65 million deposit accounts and return on equity (ROE) of 10.4 percent.
Sources and Additional Resources:
[1] ProCredit Bank Bulgaria: “Press Release: ProCredit Bank Offers New Housing Lending Programme”, http://www.procreditbank.bg/en/procredit-bank-offers-a-new-housing-lending-programme/page/300/item/9729
[2] ProCredit Holding: “2011 Annual Report”, http://www.procredit-holding.com/upload/pdf/AnnualReports/Annual_Report_2011/pch_AR_2011_15-05.pdf
MicroCapital.org story, January 24, 2012, “Mikrofond, Microfinance Centre, Citi Foundation Collaborate on Financial Education Project in Bulgaria”, https://www.microcapital.org/microcapital-brief-mikrofond-microfinance-centre-citi-foundation-collaborate-on-financial-education-project-in-bulgaria/
MicroCapital.org story, April 8, 2011, “European Fund for Southeast Europe (EFSE) Loans $21m to Microfinance Institution (MFI) ProCredit Bank Bulgaria”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-21m-to-microfinance-institution-mfi-procredit-bank-bulgaria/
MicroCapital.org story, March 8, 2011, “European Bank for Reconstruction and Development (EBRD) to Promote Energy Efficiency Through Memorandum of Understanding (MOU) with Government of Bulgaria, $9.7m Loan to Moldovan Bank BCR Chisinau”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-promote-energy-efficiency-through-memorandum-of-understanding-mou-with-government-of-bulgaria-9-7m-loan-to-moldovan-b/
MicroCapital’s Universe Profile: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding_
MicroCapital’s Universe Profile: ProCredit Bank Bulgaria, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Bulgaria
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