Release date: 7 October 2022
Promoter – Financial Intermediary
GARANTI BANK SALocation
Description
The project consists of a loan for financing eligible projects promoted by small and medium sized enterprises (SMEs) and Midcaps in Romania.
Additionality and Impact
Operation aims to help mitigate market failure of SME and Midcaps' insufficient access to long term funding for their investments at low financing costs. By addressing these market gaps, which are more acute in Romania compared to EU average, project in particular supports strengthening of EU's economic, social and territorial cohesion (85% expected to be implemented in cohesion regions). The Small size of SMEs makes them more vulnerable to economic cycles and more constrained in opportunities for growth. Most important contributions of EIB loan will be: long term funding in local currency, diversification of external funding, and signalling effect for other financiers to provide similar long-term loans to Borrower. Finally, 30% of the loan amount will be specifically dedicated to Climate Action.
Objectives
Enhance access to finance for SMEs.
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 24 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 19/06/2023
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).