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EBRD, Raiffeisen Bank support entrepreneurs in Romania
€10 million loan promotes country’s growing small business sector
The EBRD is lending Raiffeisen Bank Romania (RBRO) €10 million to help meet
the growing demand among local entrepreneurs for finance to build, modernise
or expand their existing businesses.
Raiffeisen Bank, the Romanian subsidiary of Austria’s Raiffeisen Zentralbank
Österreich AG (RZB Group), will use the funds to make loans of up to €250,000
to local entrepreneurs. Maturities on these small business loans can reach up
to 10 years, well beyond tenors currently available in the local market.
Hildegard Gacek, EBRD Director for Romania, said this loan will help overcome
a major stumbling block affecting Romania’s small and medium-sized
enterprises. The shortage of long-term finance available through local
commercial means is restricting the growth of this important sector. Through
credit lines the EBRD is working with partners like Raiffeisen Bank to address
this issue. The loan should also act as a demonstration and catalyst for other
local banks to provide longer-term financing, said Ms Gacek, which would
ultimately benefit them, their clients and the overall economy.
Rasvan Radu, RBRO Vice President for the Retail Division said: “The EBRD
financing facility has more flexible conditions for SMEs compared to other
existing financing sources. It is very useful and it will contribute to the
growth of this segment. This new agreement continues an already established
cooperation between our institutions and proves our commitment to support the
development of this sector in Romania.”
The loan is being provided in conjunction with a European Investment
Fund guarantee facility to support small and medium enterprises (SMEs) in the
European Union accession countries. The guarantee, which is offered under the
EU Multi-Annual Programme for SMEs, encourages banks to expand their finance
for entrepreneurs by enhancing their risk-taking capacity.
Raiffeisen Bank Romania was established in 2002 following the merger between
two RZB entities acting in the local market, namely Raiffeisenbank (Romania),
established in 1998 as a subsidiary of the RZB Group and the former
state-owned Banca Agricola, acquired by RZB in July 2001. RBRO is a top
universal bank in the Romanian market, providing a complete range of high
quality products and services to more than 1.2 million customers, including
individuals, SMEs and corporations, via multiple distribution channels,
ranging from 196 banking outlets throughout the country to ATMs, phone-banking
and mobile-banking.
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