Romanian lender Banca Comerciala Romana (BCR) is to provide operating capital credit facilities worth a maximum of RON 5 million (EUR 1.1 million) to SMEs under the Credit Guarantee Program for Small and Medium Enterprises.

BCR has RON 263 million (EUR 58.9 million) available under the program, according to which up to RON 526 million (over EUR 117 million) can be extended to applicants, according to the bank.

The Romanian state, through the Ministry of Public Finance (the National Guarantee Funds for Credits extended to SMEs), guarantees up to 50 percent of the financing value, excluding interests and commissions.

The loans are granted for a period of up to 24 months, but can be extended by 12 more months, without exceeding the total duration of the Program.

BCR Group posted a net profit of EUR 133.8 million in 2013, after posting a loss of EUR 277 million the year before, on the back of good operating result offsetting still elevated risk cost.

Despite an 8.9 percent decline in assets, BCR, owned by Austria’s Erste, kept its first spot assets wise within the Romanian banking system, with EUR 14.9 billion in assets at end 2013.

Irina Popescu, irina.popescu@romania-insider.com