Cetelem to enter mortgage market

A month ago, BNR issued a bill that would allow non-bank financial institutions to develop simultaneous multiple loan activities, even if some of these - e.g. mortgages - might require a single object of activity.

These institutions can provide consumer finance, mortgage and housing loans. "New regulations regarding activities of non-bank financial institutions complement our intention to integrate this new direction into Cetelem activities," Simona Tartacuta, Marketing Manager for Cetelem IFN SA, told Business Standard.

Furthermore, as of May 2007, the BNP Paribas financial group decided to combine the activities of UCB, specialized mortgage lender, and Cetelem at the international level, as part of a new business direction: Personal Finance.

"This new approach will fulfill the entire ambit of personal lending needs by providing a full range of personal loans. In the coming period we will also provide our clients with Personal Finance expertise," added Tartacuta.

Cetelem IFN SA is a consumer finance leader on the Romanian market, claiming 20 percent of the market share, and with its loan balance up by some 300 percent in just two years since it came on the market.