Romanian CEC Bank finances SMEs through Credit Guarantee Program for Small and Medium Enterprises

Romanian lender CEC Bank is offering clients facilities under the Credit Guarantee Program for Small and Medium Enterprises, and has so far given financing worth some RON 2 million (EUR 448,000), according to the bank. In February this year, the bank and the National Credit Guarantee Fund for Small and Medium Sized Enterprises (FNGCIMM) signed the Collaboration Agreement under the Credit Guarantee Program for Small and Medium Enterprises. According to this agreement, CEC Bank benefits from state guarantees for amounts up to some RON 260 million (over EUR 58 million), through which SME clients can access loans of over RON 520 million (EUR 116 million). Thus, SMEs can contract from CEC Bank credit lines in RON to finance working capital, with a maximum amount of RON 5 million (EUR 1.1 million), for a period of up to 24 months, with the possibility to further extend it for another maximum 12 months. The amounts that can be guaranteed by the state through FNGCIMM are equal to up to 50 percent of the loan’s value. CEC Bank had a gross profit of some EUR 7.6 million (RON 33.5 million) in 2012 and its portfolio of loans to corporate customers went up 32 percent, compared to the previous year. The bank’s assets increased by 8.5 percent in 2012. Irina Popescu, irina.popescu@romania-insider.com