The European Bank for Reconstruction and Development (EBRD) has launched a new financing facility for SMEs in Romania, worth EUR 60 million, according to the institution. The funds will be channeled to the real economy of Romania, through local financial intermediaries such as banks and leasing companies.

The EBRD is extending the first loan under RoSEFF, worth EUR 20 million, to Banca Comerciala Romana (BCR), Romania’s largest commercial bank and part of the Austrian Erste Group. Individual sub-loans are limited to EUR 1 million and thus the focus is on smaller-scale investments. Sub-borrowers undertaking energy efficiency investments will be reimbursed by up to 10 to 15 percent of the sub-loan amount on the successful completion of the works, according to EBRD.

The Romanian SME Sustainable Energy Financial Facility (RoSEFF) will help local companies maximise energy savings and improve their overall competitiveness, while contributing to a reduction in the country’s high energy intensity. EU supports the implementation of RoSEFF by a grant amounting to EUR 12.05 million. This funding will be used to support investment projects through technical assistance and reimbursement grants.

Since the beginning of its activity in Romania, the EBRD has invested over EUR 5 billion in different sectors of the economy, attracting additional investment of nearly EUR 8 billion from other sources. Since the launch in 2006 of the EBRD's Sustainable Energy Initiative, the Bank provided more than EUR 468 million for investments in energy efficiency in Romania.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)