Romanian state-owned lender CEC Bank contracted a EUR 50 million loan under the support program launched by the European Investment Bank (EIB) for the economies impacted by COVID-19.

CEC Bank will use the money to grant loans to companies for up to five years at interest rates at least 0.25pp lower than the bank's standard rate.

EIB, through four local partner banks, plans to extend EUR 190 mln loans to Romanian companies in the sectors most impacted by the economic, social, and health impact of the COVID-19 pandemic: manufacturing, commerce, agriculture, tourism, and transport.

The collaboration between CEC Bank and the EIB began in 2013, and this is the third financing agreement signed by the two parties.

The previous contracts were signed in 2013 and 2014, respectively, and had a cumulative value of EUR 145 mln.

With the sources attracted from the EIB so far, CEC Bank has provided financing worth about RON 1 bln (EUR 200 mln) to over 1,500 companies.

The Romanian state, through the Finance Ministry, is the sole shareholder of CEC Bank. 

(Photo courtesy of the company)

andrei@romania-insider.com