October 19 (SeeNews) - The European Investment Bank (EIB) said on Thursday it is lending 90 million lei ($23 million/ 20.3 million euro) to Romania's ProCredit Bank to support small and medium-sized enterprises (SMEs).
The loan will support ProCredit Bank in providing financing to businesses in Romania that contribute to development and employment in the country, the EIB said in a press release.
The credit line will be extended to ProCredit Bank business clients who are active in the production, trade and service sectors, and who comply with the bank's ethical, social and environmental standards.
"Cooperation of EU bank with ProCredit Bank in Romania will provide Romanian companies with much needed access to long-term, reliable and affordable financing. This is important for the private sector development in general and for small and medium-sized enterprises in particular," EIB vice-president Andrew McDowell said.
This represents the first credit line in Romanian leu from the EIB and marks the continuation of the cooperation between the EIB and the ProCredit group in the region, the EIB added.
"This sends a strong positive signal to the business community in Romania, as loans in local currency will support the long-term planning of investments. This will allow small and medium-sized enterprises to upgrade and expand their operations," ProCredit Bank management board member Mariyana Dimitrova Petkova said.
In June, ProCredit Bank was one of five Romanian banks to sign up to the SMEs Initiative in Romania led by EIB, the European Investment Fund (EIF) and the European Commission that is expected to provide about 540 million euro ($601 million) in new financing.
(1 euro = 4.5841 lei)