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EBRD financing promotes small business in Romania
Banca Transilvania is the first bank in Romania to benefit from a small and medium-sized enterprise (SME) finance facility signed by the European Bank for Reconstruction and Development (EBRD) and the European Commission in April 1999.
Banca Transilvania, which is based in Cluj-Napoca with a branch network across the whole of Romania, will receive a credit line of up to US$ 5 million (EUR 4.9 million) to finance small and medium-sized businesses and start-ups throughout the country.
"The facility will support the development of the SME sector, which is at the heart of our strategy for Romania," said Salvatore Candido, EBRD Director for Romania. "The direct benefits are twofold: the development of the Romanian private sector and the consolidation of a private bank. However, action still needs to be taken by the authorities to create an environment that encourages the development of small businesses."
"Banca Transilvania is one of the most dynamic private banks in the country," said Iosif Pop, President of Banca Transilvania. "Banca Transilvania is highly dedicated to the development of the Romanian private sector, and the SME sector is a key part of our strategy for the future. This credit line from the EBRD is an acknowledgement of our efforts to promote the financing of SMEs and will also support the bank’s further development."
The European Commission is providing a two-year technical cooperation programme through EU-Phare, which will be used to provide long-term credit advisors and experts in various fields. It will also cover staff training costs at the start of the lending programme. Phare is currently the main channel for the European Union’s financial and technical cooperation with the countries of central and eastern Europe. Along with private sector privatisation and restructuring, Phare commitments to SMEs between 1990 and 1998 amounted to EUR 12.0 billion.
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