The European Investment Bank (EIB) is lending up to EUR 50 million to Garanti Bank Romania, one of the most innovative and dynamic banks on the Romanian market, to finance projects promoted by small and medium-sized enterprises, midcap companies and public sector entities in Romania. The EIB loan is focused on fostering undertakings with positive impacts on the increase of employment in the country.
Mr Mihai Tanasescu, EIB Vice-President responsible for lending operations in Romania, commented: “The loan signed today is in line with the EIB’s lending priority of easing access to long-term financing for SMEs and midcap companies, which are the backbone of Romanian industry and have been hit hard by the fragmentation of the financial market. In cooperation with Garanti Bank, a new EIB partner financing institution, EIB funds will support investments undertaken mainly by SMEs on favourable terms and strengthen the competitiveness of this important economic sector”.
“Together with the EIB, Garanti Bank aims to offer primarily SMEs and midcaps the possibility to grow and develop their businesses through long-term lending solutions and partnerships. With the right financing and support, SMEs and midcap companies can contribute significantly to the country’s economic recovery”, said Ufuk Tandogan, Garanti Bank’s CEO.
The current loan is the first EIB operation with Garanti Bank S.A. Romania. This intermediated loan is being provided under the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs in order to mitigate the effects of the financial crisis.
Currently, Garanti Bank has more than 25,000 SME clients and over 3,000 corporate customers. In 2013, SME loans accounted for the biggest increase in the bank’s loans portfolio, with 17%. The funds provided through the EIB will support the growth of SMEs and midcaps by enhancing long-term competitiveness through the increased availability of long-term credit.