September 2 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Friday it is providing a 25 million euro ($25 million) loan to Romania's Banca Transilvania [BSE:TLV] to support its on-lending to businesses in the challenging economic environment caused by the war in Ukraine.
The loan is part of the EBRD’s 2 billion euro Resilience and Livelihoods framework which supports companies and countries directly or indirectly affected by the war on Ukraine, the EBRD said in a press release.
The loan will also comply with the European Union’s Bank Resolution and Recovery Directive, helping Banca Transilvania achieve its regulatory targets.
The Romanian economy has been negatively affected by spillover effects including inflation – consumer prices were up 15.1% year on year in June, while producer prices rose 48.1% – and strained supply chains and logistics infrastructure, affecting a wide spectrum of economic sectors, the EBRD also said.
Banca Transilvania is Romania’s largest bank by total assets, with a network of about 500 branches at the end of 2021. The bank is listed on the Bucharest Stock Exchange with more than 60% of its capital held by Romanian investors.
Banca Transilvania shares were trading 0.31% higher at 19.58 lei ($4.05/ 4.05 euro) as of 1204CET on the Bucharest bourse.
(1 euro=4.8344 lei)
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