As Eesti Uhispank Mortgage Loan Credit Line Summary Of Project Information (SPI)       Project Name    Estonia-Eesti Uhispank (EUP)            Region    Eastern Europe        Sector       Project No009276   Projected Board DateDecember 29, 1998   Company NameEesti Uhispank   Technical Partner and/or Major Shareholders    	The strategic partner in this project would be Skandinaviska Enskilda Banken (SEB), one of the largest banks in Scandinavia. It is one of the most dynamic Nordic institutions in both banking and asset management, and has recently started expanding its operations in the Baltic countries. SEB will aquire 32% of EUP''s shares through the purchase of existing shares and a new share issue.       Project Cost Including proposed IFC investment    	DM32,375,000    Location of project and Description of site    	Estonia is the most advanced of the three Baltic countries and has recently started negotiations for its accession into the European Union. The country has a currency board system whereby the Estonian kroon is pegged to the German mark. The GDP growth is predicted to moderate to approximately 4% at the end 1998 from a strong growth of 11% at the end of 1997. Economic reforms and western-oriented policies remain well entrenched in Estonia with strong political consensus on free market reforms and integration with Europe.    Description of Company and Purpose of Project   The project involves the provision of a convertible loan of up to DM32,375,000 to Eesti Uhispank (EUP).  The proceeds of the loan would be used to provide residential mortgage loans to individual Estonian homebuyers.  This would be IFCs second loan to EUP. The first loan of DM10 million for onlending to small- and medium-sized enterprises, was approved by IFC''s board in November 1996 and is fully disbursed.    	EUP, established in 1992, is the second largest bank in Estonia in terms of assets, loans and deposits.  The Bank is engaged in commercial and retail banking, mortgage and other lending, advisory and other financial services, treasury activities, and insurance.           Despite Estonias economic progress and relative political stability; sources of term funding are limited.  The demand for mortgage lending in Estonia is strong and growing and limited only by commercial banks capacity to lend.  Through this project, IFC would help provide affordable housing finance to individuals. Moreover, this project would contribute to the development of Estonias banking sector by strengthening a major Estonian banking institution.     Environmental Category and Issues    	This is a Financial Intermediary (FI) Tier 1 project according to IFC''s environmental review procedure.  EUP will be required to apply environmental review procedures to relevant operations and ensure that subprojects comply with the Estonian environmental, health and safety legislation and standards. IFC will assess EUP''s capability to carry out environmental reviews.        Date SPI sent to InfoShop     November 25, 1998      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384