The European Investment Fund (EIF) is offering guarantees totalling EUR 477.75 million to seven banks in Romania under agreements concluded to increase the competitiveness and sustainability of companies, according to EIF.
The seven banks are UniCredit Bank, Alpha Bank, Libra Internet Bank, BRD Groupe Societe Generale, Patria Bank, Intesa Sanpaolo Bank and Garanti BBVA.
Thus, the guarantees of nearly 500 million euros from the European Investment Fund (EIF) to banks will catalyse a minimum of 700 million euros in financing for Romanian SMEs.
The purpose of the agreements is to increase the financing power of banks by EUR 309 million for competitiveness and by EUR 168.75 million for sustainability, allowing them to offer favourable loan terms and conditions for SMEs, including lower interest rates.
The transactions add to 2023 EIF guarantees totalling EUR 1 billion for five banks in Romania.
The new uncapped EIF direct guarantees are supported by the InvestEU programme led by the European Commission, as well as by the Recovery and Resilience Facility. Improved loan conditions for SMEs will also include longer maturities and reduced collateral and down payment requirements.
EIF's Director General Marjut Falkstedt says that today's agreements will improve the access of SMEs in Romania to funding, thus contributing to growth, competitiveness and a greener future. They rely on the close cooperation between the Romanian government, the European Commission and the EIF, in order to make sure that Romanian companies receive the support they need.
The seven banks will be able to facilitate access to finance for a wider range of businesses - including startups - and industries, with loan terms that would not be available in the absence of EIF guarantees. That, in turn, is expected to improve business results, strengthen the Romanian economy and accelerate the country's green transition.
As funding will be available in both the local currency, the leu (RON), and euros, the new agreements will also strengthen the cohesion regions in Romania, by boosting business expansion, promoting clean transport and supporting value chains.
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support micro, small and medium-sized enterprises (SMEs) in Europe by facilitating their access to finance.
The InvestEU Member State Compartment allows member states to contribute part of their shared management funds, Recovery and Resilience Facility resources and national resources to the InvestEU Fund by setting up a dedicated Member State Compartment. .