RSS
Romanian banks to get an additional €500 million in financing under new EIF guarantee agreements
-
EIF reaches deals with seven banks to bolster business competitiveness and sustainability
-
Agreements to improve financing terms for SMEs including lower interest rates
-
InvestEU Member State Compartment in Romania is supporting sustainable growth, as a national priority
European Investment Fund’s (EIF) approximately €500 million in guarantees to banks will catalyze a minimum of €700 million in funding for Romanian SMEs. Romanian companies will have access to extra financing under a series of new EIF agreements with banks in the country. The EIF is offering seven banks in Romania – UniCredit Bank, Alpha Bank, Libra Internet Bank, BRD Groupe Société Générale, Patria Bank, Intesa Sanpaolo Bank and Garanti BBVA – guarantees totalling €477.75 million.
The agreements aim to increase the financial firepower of banks with a guarantee volume of €309 million for competitiveness and €168.75 million for sustainability, allowing them to offer better terms to Romanian SMEs, including lower interest rates. The deals come on top of EIF’s guarantees in 2023 totalling €1 billion for five banks in Romania.
The EIF’s new uncapped direct guarantees are backed by the European Commission-led InvestEU programme and Recovery and Resilience Facility. The improved loan terms for SMEs will also include longer maturities and reduced collateral and down-payment requirements.
“Today's agreements will improve access to finance for SMEs in Romania, thus contributing to growth, competitiveness and a greener future,” said EIF Chief Executive Marjut Falkstedt. “This builds on the close cooperation between the Romanian government, the European Commission and the EIF to make sure that Romanian businesses get the support they need.”
The seven banks will be able to facilitate access to finance for a broader range of companies – including startups – and industries, with loan terms that would be unavailable in the absence of the EIF guarantees. This in turn will bolster the bottom lines of businesses, strengthen the Romanian economy and accelerate the country’s
With financing to be available both in Romanian lei and in euros, the new accords will also bolster cohesion regions in Romania by fostering business expansion, promoting clean transport and supporting value chains.
Background information
As of 2 May 2024 the EIF aligns its logo to the EU family, reinforcing its role as a key EU player.
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability and more.
About the InvestEU Member State Compartment
The InvestEU Member State Compartment enables the Member States to contribute part of their shared management funds, resources from the Recovery and Resilience Facility, and national resources to the InvestEU Fund by setting up a dedicated Member State Compartment. With this voluntary contribution, Member States can leverage on the InvestEU guarantee to support specific national priorities. Under the Member State Compartment, loans, guarantees or equity investments can be offered as a complement to other public and private investments.