Local lender Raiffeisen Bank will lend EUR 50 million to small and medium-sized companies (SMEs) under European Commission’s JEREMIE program, following an agreement signed with the European Investment Fund (EIF), which will provide half of the necessary funds.

The bank also granted EUR 40 million loans last year under the same program.

Local lender Banca Transilvania will also receive an additional funding of EUR 13 million for the JEREMIE program, which will help it lend EUR 26 million to local SMEs this year. In 2014, it lent EUR 30 million under this program.

JEREMIE is a joint initiative developed by the European Commission in co-operation with the European Investment Bank Group and other financial institutions to support SMEs by allowing them to get financing at lower costs.

Local banks generally get half of the money from the EIF and the other half comes from their own resources. Five local banks take part in this program, namely Banca Transilvania, BRD Groupe Societe Generale, CEC Bank, ProCredit Bank and Raiffeisen Bank. They recently got a EUR 50 million from the EIF, allowing them to lend EUR 100 million this year to local SMEs.

editor@romania-insider.com