The European Investment Bank (EIB) is lending EUR 10 million to Banca Comerciala Carpatica (BCC) to finance projects of small and medium-sized enterprises (SMEs) in Romania in the areas of industry, services including tourism, agriculture, health, energy, environmental protection and development of a knowledge-based economy.
This loan is designed to support projects promoted by SMEs in Romania. It is aimed at reducing the impact of the current economic crisis by improving access to medium and long-term funds on advantageous financial terms. To these ends the EIB has also simplified its procedures and broadening the scope of its financing by also covering intangible types of investment. In addition, it is increasing transparency by working towards a more effective transfer of the advantage of EIB funds to the final beneficiaries.
Through its credit lines, the EIB finances projects usually implemented by SMEs (with fewer than 250 employees) but also by mid-cap companies or municipalities. To increase the access of SMEs to long-term financing, the EIB closely cooperates with local financial institutions that have local market expertise, particularly in providing services to small and medium-sized entrepreneurs through a well-developed network. This is the EIB’s first operation with Banca Comerciala Carpatica as a local privately-owned Romanian bank, marking an expansion in the Bank’s cooperation with local financial institutions in supporting SMEs projects and their access to advantageous financing conditions.
Background:
The task of the EIB, the European Union’s financing institution, is to contribute to the integration, balanced development and economic and social cohesion of the Member States by financing sound investment.
Since 1990, the EIB has signed loan contracts in Romania amounting to some EUR 6.5 billion, out of which some EUR 410 million (including the current loan) supported SME, mid-cap companies and smaller municipality projects through Romanian financial institutions.