The European Bank for Reconstruction and Development (EBRD) will provide a EUR 5 million loan to Romanian steel producer Donalam, part of the Italian group Beltrame.

Donalam will use the loan to bridge a potential working capital gap, the EBRD announced in a press release.

Donalam, located in Calarasi, south-eastern Romania, was set up in 2006 after the Italian group Beltrame, a European leader in merchant bars, bought the local Siderca rolling mill. Steel rounds produced at Donalam are sold to Germany, Italy, and markets in central and eastern Europe, for use in industrial and mechanical engineering, the automotive sector, and the oil industry.

The company will use the two-year EBRD loan to finance its working capital needs and bridge liquidity gaps caused by the Covid-19 pandemic.

The EBRD previously provided EUR 4 million in financing for investments at the Donalam steel mill.

The EBRD says its activity is currently fully dedicated to helping the economies where it invests and private companies to overcome the impact of the ongoing coronavirus pandemic.

andrei@romania-insider.com

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