EIB extends credit line to Banka Transilvania S.A. for SMEs, midcaps and municipalities in Romania
The European Investment Bank (EIB) has authorised a EUR 150 million loan to Banca Transilvania S.A. in support of projects to be promoted by small and medium-sized enterprises (SMEs), midcap companies and public entities in the sectors of industry, services, agriculture and infrastructure in Romania.
Banca Transilvania is a new partner of the EIB in Romania, through which the “EU bank” will improve the access of SMEs, midcap companies and public entities to affordable investment finance. 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.
The loan is being granted in the framework of the EIB’s “Skills and Jobs – Investing for Youth” programme supporting the employment of young people, a key priority for the EIB.
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.
The EIB supports SME investments in Romania as part of the Joint IFI Action Plan for Growth in Central and South Eastern Europe, whose aim is to provide better access to long-term finance for Europe's SMEs in a difficult economic environment.
The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Banca Transilvania is one of the three largest banks in Romania, with a market share of over 9% based on assets. It is recognised on the domestic market as the “Bank for Entrepreneurial People”, one of its three business lines being particularly dedicated to SME clients. BT has 1.78 million customers and almost 550 units.