The European Investment Bank (EIB) will lend EUR 50 million to Romania’s UniCredit Leasing Corporation, to help finance projects promoted by small and medium-sized enterprises (SMEs) and midcap companies in the areas of agriculture, industry and services in Romania, according to an official announcement.

A minimum of 70 percent of the loan is earmarked for supporting SME projects while midcaps and public sector authorities will receive some 30 percent of the loan amount, the institution said.

“EIB funds will facilitate the access of Romanian SMEs and midcap companies active in the sectors of agriculture, industry and services in the country. The improved availability of long-term finance for these companies is important for the development and diversification of the Romanian economy and will have positive impacts on economic growth and job creation across the country, including rural areas,” EIB Vice-President Mihai Tanasescu said.

The first tranche of this loan will be available in July this year and the second at the beginning of next year. The loan is for a five-year period and bears an interest rate of 4.49 percent a year.

UniCredit Leasing is the largest leasing company in Romania. It granted new loans totaling EUR 245 million in 2013.

This is the second loan from EIB to UniCredit leasing. The previous one, in 2008, was also EUR 50 million, also for SMEs and midcap projects.

Andrei Chirileasa, andrei@romania-insider.com