The European Investment Bank (EIB), which is now promoting itself as the “EU bank”, has authorized a EUR 150 million loan to Romanian Banca Transilvania (BVB ticker: TLV), the country’s third largest bank, to support projects to be promoted by local small and medium-sized enterprises (SMEs), midcap companies and public entities in the sectors of industry, services, agriculture and infrastructure in Romania, according to an EIB announcement on Wednesday, October 22.
“This cooperation is focused on the revival of the Romanian economy, encouraging Romanian companies to start new investments, consider possibilities of expanding their business activities and create new work places while relying on flexible long-term funding,” according to the announcement.
The loan is being granted as part of EIB’s “Skills and Jobs – Investing for Youth” programme supporting the employment of young people, a key priority for European financial institution.
“The youth unemployment rate currently stands at 23% in Romania. The EIB, in cooperation with Banca Transilvania, will therefore provide additional incentives to beneficiary companies employing young people, offering training opportunities or cooperating with colleges, schools or universities to improve the employment prospects of young people,” EIB explained.
Banca Transilvania also received a USD 40 million subordinated loan from IFC, the Investment Division of the World Bank, earlier this year.
Banca Transilvania is among the largest three banks in Romania, in terms of assets. It has over 6.000 employees, a network of over 550 units and 1.78 million clients.
Some of its main shareholders are EBRD, which holds 15% of share capital and IFC, with a 3.5% stake. Romanian investors hold the majority of the bank’s shares.
Banca Transilvania is also one of the largest local companies listed on the Bucharest Stock Exchange (BVB), with a market share of EUR 1 billion.
Andrei Chirileasa, [email protected]