October 19 (SeeNews) - The European Investment Fund (EIF), part of the European Investment Bank group (EIB), on Thursday said it has concluded new partnerships with three Romanian banks to extend the range of financing products for small and medium-sized enterprises (SMEs) in the country.
The three banks are Romania's BRD Groupe Societe Generale [BSE: BRD], ING Bank Bucharest Branch and Libra Internet Bank. These transactions are expected to benefit around 300 SMEs and start-ups in need of finance, the EIF said in a press release on Thursday.
The agreements with the three banks aim to facilitate access to finance for Romanian SMEs by providing a 60% guarantee on each loan and by lowering the interest rates charged by banks.
The EIF has thus made a commitment to deliver enhanced access to finance for SMEs in Romania by extending the number of banks in Romania supporting local companies to eight, from initial five.
In June, five Romanian banks signed up to the SMEs Initiative in Romania led by The European Investment Bank (EIB), EIF and the European Commission that is expected to provide about 540 million euro ($601 million) in new financing.These transactions with Raiffeisen Bank, ProCredit Bank Romania, Banca Comerciala Romana, Banca Transilvania and BancPost are expected to benefit around 3,700 SMEs and start-ups in need of finance.
The SME Initiative Programme for Romania, adopted in October, is part of a broader initiative of the European Commission and the European Investment Bank Group.
The SME Initiative is a joint financial instrument of the European Commission and the EIB Group. It was designed as a fast and effective response instrument to increase lending to the real economy, create jobs and stimulate growth.
Also on Thursday, the EIB said it is lending 90 million lei ($23 million/ 20.3 million euro) to Romania's ProCredit Bank to support SMEs. The loan will support ProCredit Bank in providing financing to businesses in Romania that contribute to development and employment in the country.
In August, EIF and BRD concluded a new partnership to extend the range of financing products for local SMEs, aiming to stimulate their access to finance. Some 140 million lei will be provided in loans, both for the financing of working capital and for Investment projects.
(1 euro=4.5921 lei)
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