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BUCHAREST (Romania), February 20 (SeeNews) - The European Investment Bank (EIB) said on Tuesday it is lending 75 million euro ($93 million) to Romania’s second-largest bank Banca Transilvania [BSE:TLV].
This is the first tranche of an approved loan of 150 million euro to Banca Transilvania to co-finance projects undertaken by Romanian SMEs and mid-caps, the EIB said in a press release.
"The EIB loan, in cooperation with Banca Transilvania, will support the investment needs of 3000 businesses by providing them with better access to long-term finance. We will focus on corporate investments that can accelerate economic growth and that are expected to support 37 000 job opportunities in Romania’s less developed areas," EIB vice-president Andrew McDowell said.
Around 85% of the EIB funding is dedicated to supporting investments in parts of Romania that are covered by the EU bank’s cohesion and regional development lending priority.
"This is BT’s second facility provided by the European Investment Bank in order to finance SMEs in Romania, amounting to a total of 150 million euro. It is our strong belief that this EIB loan will contribute to our efforts to support local entrepreneurs," Banca Transilvania CEO, Omer Tetik, said.
The EIB has already provided BT with loans amounting to 150 million euro that are fully disbursed under advantageous terms for the benefit of the financing projects of SMEs and mid-caps. This latest EIB approval for an equal sum brings the total EIB lending commitment to the bank to 300 million euro.
Banca Transilvania is the second largest bank in Romania. With some 500 units across the country, it is well equipped to reach a considerable number of SMEs and mid-caps, as one in three new businesses opened in 2017 have chosen to work with BT, the EIB said.
Shares of Banca Transilvania traded 0.64% higher at 2.36 lei at 1247 CET on Tuesday on the Bucharest Stock Exchange.