|
EBRD, EC and Volksbank promote SMEs in Romania
Second loan in 6 months to Volksbank to support engines of growth in region
The EBRD, together with the European Commission, will promote small and medium-sized enterprises in Romania through a €12 million facility to Volksbank Romania, a subsidiary of Austria's Volksbank. Set up in 2000, Volksbank Romania aims to be a leading provider of loans to local SMEs, an important sector in any successful private economy.
Under the loan agreement, the EBRD is extending a €10 million credit line to Volksbank Romania, along with €2 million from the EC for financial incentives and technical assistance. These amounts are part of the EU/EBRD SME Facility, a programme of the EC in cooperation with the EBRD to facilitate the access to finance of small and medium-sized enterprises and to promote SME growth and development.
Noreen Doyle, First Vice President at the EBRD, said Volksbank is building on its successful experiences in Austria, and moving into central and eastern Europe to promote the growth of the SME market. This is the EBRD's second loan to the Volksbank Group in just six months, Ms Doyle said. "The bank is committed to promoting the growth of this important sector in the region, and the EBRD is pleased to be working with Volksbank to help develop these engines of growth", she added.
The credit line builds on €12.25 million provided to Volksbank Hungary late last year to provide financing to SMEs across Hungary. The Bank will also aim to increase its cooperation with Volksbank into areas including non-banking financial institutions, for example mortgage financing, and the development of municipalities across the region.
"Volksbank Romania is highly committed to the development of the Romanian private sector," said [Christian Kaltenbrunner, member in the Board of Volksbank Romania. "The SME sector is a key part of our strategy for the future, and this credit line from the EBRD comes in support of our efforts to provide financing to local entrepreneurs."
The SME Facility was launched on April 1999 under the Phare Programme of the European Commission, with the EBRD, to encourage the growth and development of SMEs by facilitating their access to loans, leasing and equity finance from local financial intermediaries in the candidate countries.
The Phare Programme is currently the main channel for the European Union's financial and technical cooperation with the candidate countries of central and eastern Europe. The budget earmarked for the Phare Programme as a whole is about €1.5 billion a year.
|
