The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a new EUR 20 million pilot programme aimed at helping innovative small and medium-sized enterprises (SMEs) and mid-cap companies in Bulgaria, Latvia and Romania.

The EBRD and the European Commission will provide a comprehensive package of finance, advisory support and measures to promote green technologies.

“This exciting new partnership with the EBRD allows us to boost finance for innovation in SMEs in countries where there are investment gaps in the field of innovation. Our joint efforts will give a boost to the economies of Latvia, Romania and Bulgaria, and to their competitiveness and growth,” said Carlos Moedas, EU Commissioner for Research, Science and Innovation.

Under the first agreement, the EU will extend EUR 12.5 million in grants to Romania provided for under the EU Framework Programme for Research and Innovation, Horizon 2020, in a drive to help innovative SMEs and midcaps become more competitive.

While the EBRD's credit lines will help local banks to lend to eligible businesses, the EU grants will finance the training of local lending finance providers to support new financial products. In addition, proven successful projects can receive bonus financing.

Under the second agreement, another EUR 7.5 million in Horizon 2020 grants will serve to support small businesses with advisory services to boost innovation as well as to prepare them for direct finance provided by the EBRD. The same funds will also help companies in the three countries make use of innovative technologies to reduce greenhouse gas emissions and become more resilient to the effects of climate change.

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editor@romania-insider.com