EBRD agrees EUR 30 mln in financing for Romanian SMEs via Banca Transilvania

Romanian lender Banca Transilvania is the third local bank to receive a financing line from an international lender, in this case from the European Bank for Reconstruction and Development (EBRD) to support SMEs in the country. The deal will provide EUR 30 million to allow Banca Transilvania “to continue supporting local small and medium-sized enterprises.” The agreement follows earlier similar financing arrangements between the European Investment Bank (EIB) and local banks Intesa Sanpaolo Romania and Raiffeisen Romania. A third of the new financing will be earmarked for energy efficiency and small scale renewable energy projects, provided under the EBRD’s Romania SME Sustainable Energy Financing Facility. According to the EBRD, small locally run businesses have a vital role to play in the economy and Banca Transilvania has a proven record in funding SMEs in Romania. “Small and medium-sized businesses are crucial for the sustainable development of the Romanian real economy. The EBRD projects with Banca Transilvania will bring more financing to the SME sector, supporting its development at a time when access to finance remains limited,” said EBRD Managing Director for Financial Institutions Nick Tesseyman. Banca Transilvania's Chairman of Board of Directors Horia Ciorcila welcomed the agreement and said it would allow the bank to continue its SME friendly strategy. The EBRD owns a 14.6 percent stake in Banca Transilvania and the energy efficiency loan is provided with the support of grant financing from the EU. Since the beginning of operations, the EBRD has invested around EUR 6 billion in Romania, as well as mobilizing more than EUR 11 billion for projects from other sources of financing. Liam Lever, liam@romania-insider.com (photo source: EBRD)