February 4 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Friday that it will guarantee up to 65% of sub-loans provided to local companies by Romanian lenders Banca Transilvania [BSE:TLV] and Raiffeisen Bank under a new risk-sharing framework.
EBRD's commitment could reach up to 150 million euro ($172 million) to Banca Transilvania and 100 million euro to Raiffeisen Bank, the bank said in a press release.
The new risk-sharing framework is designed to allow the EBRD to share partner banks’ exposures to local enterprises through either funded or unfunded risk participation. The facilities to both Banca Transilvania and Raiffeisen Bank are provided on an unfunded risk participation basis.
"We want to ensure that `businesses in Romania have access to a more diverse range of financing sources that suit their needs. Risk-sharing is a new instrument in our toolbox as we continue providing finance that encourages investment and economic growth. I am pleased that our two strong partners Banca Transilvania and Raiffeisen Bank have already signed up," EBRD Regional Director for Romania and Bulgaria Mark Davis said.
To date, the EBRD has invested 9.5 billion euro through 485 projects in the country, where some 77% of the EBRD’s investments are in the private sector.
Blue-chip Banca Transilvania shares were trading flat at 2.69 lei ($0.6/0.5 euro) on Friday at 1349CET on the Bucharest Stock Exchange,
($=0.886 euro)