Romanian banks ready to lend EUR 3.7 bln to SMEs

Some 20 Romanian banks have expressed their intention to lend up to RON 18 billion (EUR 3.7 bln) to small and medium-sized enterprises (SMEs), with guarantees from the Government.

The Government announced that the European Commission allowed it to extend 90% state guarantees covering up to RON 15 bln (EUR 3.1 bln) worth of loans to SMEs.

The loans will finance the companies' working capital and investment needs, under the so-called IMM Invest Romania program.

The National Credit Guarantee Fund for Small and Medium Enterprises (FNGCIMM) is running the program.

"So far, 20 banks have expressed their intention to sign guarantee agreements with FNGCIMM within the IMM INVEST Romania Program," the representatives of the financial institution announced, quoted by Ziarul Financiar.

Banks can still submit to FNGCIMM their applications, which include the value of loans they are willing to grant and the financial terms (interest and other fees).

The Government will subsidize the interest costs for the loans granted under the program, but only this year.

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