BSTDB lending 10 mln euro to Garanti BBVA Romania

The financing will aid Garanti BBVA Romania's general corporate business and the expansion of its loan portfolio to support local companies, the BSTDB said in a press release on Tuesday. It will also diversify Garanti's funding sources, allowing it to comply with EU and Romanian banking regulations.

The loan will also support economic ties between BSTDB members Romania and Turkey, the lender said, adding that the BSTDB expects the positive effect of the loan to ripple throughout the entire Romanian economy by increasing tax revenue gains, employment, export capacity, and competitiveness.

In 2021, the BSTDB provided Garanti BBVA Romania with a five-year loan of 40 million euro to support small and medium-sized enterprises impacted by the Covid-19 pandemic.

Active in Romania since 1998, Garanti BBVA Romania is a subsidiary of Garanti BBVA Turkey, the second largest private bank in Turkey. Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA) is the majority shareholder of Garanti BBVA Turkey.

The BSTDB is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. The authorised capital of the bank is 3.45 billion euro.

($=0.9195 euro)