Five banks signed yesterday guarantee agreements to implement the Initiative for small and medium-sized firms (SMEs) in Romania, which will provide funding of about EUR 540 million.

Raiffeisen Bank, ProCredit Bank Romania, Banca Comerciala Romana, Banca Transilvania and Bancpost are the first banks that signed the agreement, and ING Bank will join in a few days.

The Initiative for SMEs is a collaboration between the EIB Group (European Investment Bank and European Investment Fund), the Government of Romania and the European Commission. Romania contributes to this instrument with EUR 100 million from the European Regional Development Fund, together with EIB resources and resources of the EU’s Horizon 2020 program.

The agreements with the five banks aim to facilitate access to finance for Romanian SMEs, providing a guarantee covering 60% of each loan and reduced interest. About 3,700 Romanian SMEs will get financial support.

Banca Transilvania is the first bank that announced it will get EUR 100 million from this program. The loans will be granted in Romanian currency lei, and the guarantee will cover 60% of a loan’s value.

Supporting creative industries occupies an important place in this program for Banca Transilvania.

editor@romania-insider.com