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ING Bank Romania lends 15.5 mln euro to mobile phone distributor Gersim

ING Bank Romania lends 15.5 mln euro to mobile phone distributor Gersim Source: Gersim

BUCHAREST (Romania), October 19 (SeeNews) - ING Bank Romania said on Tuesday it has granted a 15.5 million euro ($18.07 million) loan to local distributor of mobile phones and tablets Gersim.

Gersim will use the proceeds of the loan to diversify its portfolio, ING Bank Romania said in a press release.

"Recently, we introduced a new brand in our portfolio, for which we allocated $50 million. The pressure on liquidity is huge in the market and we are glad to have found a partner in ING, to support our growth," Gersim CEO and founder Dan Stefanescu said.

In 2020, mobile phone sales have been affected by pandemic-induced restrictions on businesses and by fears sparked by the coronavirus pandemic. In the first half of 2021, sales in Romania have returned to growth and were ahead of the previous year by about 20%, but in the third quarter, the global shortage of computer chips led to a decline in the market by 6% compared to last year.

However, it is estimated that the emergence of more and more 5G-capable high-performance models of mobile phones will spur the development of this industry in the coming period, ING Bank said.

Founded in 2002, Gersim is the leader of the local distribution market for mobile phones and tablets, with an annual turnover of 150 to 190 million euro.

($=0.8576 euro)