Romanian companies receive EUR 1.38bn under SME Initiative from EIB, EU

In this framework, new deals and amendments to the existing agreements with Romanian financial intermediaries for increased volumes were signed.


EIB | Bucharest | Updated: 03-10-2019 20:49 IST | Created: 03-10-2019 20:49 IST
Romanian companies receive EUR 1.38bn under SME Initiative from EIB, EU
The agreements with the financial institutions mentioned 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. Image Credit: Flickr
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In light of the successful implementation of the SME Initiative Romania, the Romanian Authorities have allocated additional EUR 150m from Regional Operational Program, co-financed through ERFD, bringing the total ESIF budget under the programme to up to EUR 250m. This increase, together with additional resources from the EIB Group and the European Commission, will result in a total amount of financing to Romanian SMEs available under SMEi Romania of up to EUR 1.38bn.

In this framework, new deals and amendments to the existing agreements with Romanian financial intermediaries for increased volumes were signed. These transactions with CEC Bank, Banca Comerciala Romana, BRD - Groupe Societe Generale, Libra Internet Bank, ProCredit Bank, Raiffeisen Bank and Unicredit Bank, and the existing transactions with Banca Transilvania and ING Bank Romania, are expected to benefit around 5,000 SMEs and start-ups in need of finance. The agreements with the financial institutions mentioned 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.

EIB Vice-President Andrew McDowell commented: “The SME Initiative is combining structural funds with other EU and EIB resources to make loans available to 5,000 Romanian SMEs on better terms, helping to create badly needed jobs in the private sector. This has already worked really well in the last year, which is why we are now more than doubling the size of the initiative.”

Eugen Teodorovici, Minister of Public Finance and EIB Governor for Romania, stated: “Romania is among the few EU Member States that are implementing this initiative and we have duly turned it into a hallmark programme for our SMEs. More than 2,000 Romanian SMEs have benefited from this initiative, with almost EUR 500m committed in their support. Together with our partners, we aim to further build on this initiative in our drive to make SMEs the backbone of our economy.”

Deputy Prime Minister, and Minister of Regional Development and Public Administration, Daniel Suciu, said: “With almost 2,000 Romanian small and medium-sized enterprises already benefiting from the SME Initiative, the top-up approved last year will further enable other SMEs to access loans at reduced interest rates and with lower collaterals, in order to boost their economic competitiveness. Besides an innovative use of European Structural and Investment Funds, more private capital will be attracted into the SME space as new financing markets and ecosystems are targeted through the increased resources available in Romania.”

Commenting on the programme increase, EIF Director Hubert Cottogni said: “Combining ESIF funds with EIB Group and EU resources is a great way to achieve more with less. It allows the EIF to take on part of the risk of financial intermediaries for the ultimate benefit of Romanian SMEs. The additional ESIF resources made available by Romania, leveraged with commercial lending, will generate up to EUR1.38bn worth of new loans for SMEs across Romania.”

Commissioner for Neighbourhood Policy, Enlargement Negotiations and Regional Policy, Johannes Hahn said: “The SME Initiative is a perfect example of how Cohesion Policy funding used in an innovative way can multiply its effects on the ground. Romania was among the first Member States to join the SME Initiative and this has paid off. Thanks to the additional resources from the European Regional Development Fund, more and more SMEs and start-ups will be able to seize this opportunity and continue creating jobs, growth, and prosperity for the country and its people.”

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