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EBRD, EU and Volksbank support SMEs in Romania
Additional finance helps VBR build on successful small business activities
More than 320 entrepreneurs across Romania have benefited from a €10 million
EBRD loan to Volksbank Romania (VBR) since 2002. Their number may soon double
following a €10 million extension to this loan enabling VBR to reach out to
even more entrepreneurs needing finance to launch or expand their businesses.
The EBRD loan is complemented by €1.2 million grant financing from the
European Union to ensure successful implementation of the project. The finance
is provided under the EU/EBRD SME Finance Facility, a programme of the
European Commission and EBRD promoting the growth and development of SMEs
across those countries which recently joined the EU plus Bulgaria and Romania.
So far 11 banks and leasing companies in Romania have received loans under
this facility.
Hildegard Gacek, Director for Romania at the EBRD, said there is a clear
demand for finance from entrepreneurs which today is not being met. Volksbank
Romania, with its clear focus on SME business, is helping to meet some of that
demand with support from the Bank. The EBRD strongly supports entrepreneurs,
which are crucial to economic strength in any country, Ms Gacek said.
Jonathan Scheele, Head of the Delegation of the European Commission to
Romania, said: “The EU’s support for the SME sector is and for the foreseeable
future will be strong. The support provided to VBR, including the technical
assistance provided under the first loan, is an indication of this support.
The Romanian economy needs continued growth, and SMEs are a key driver of
economic progress.”
Laurentiu Mitrache, President of Volksbank Romania, said: “Business with the
SME sector is a core part of Volksbank Romania’s strategy, and this latest
loan will support our growth in this important area. We are very pleased to
continue our co-operation with the EBRD, building on the success of the first
loan, and we are also grateful for the assistance of the European Union in
this project.”
Established and operational since 2000, Volksbank Romania, majority owned by
Austria’s Volksbank International (subsidiary of Österreichische
Volksbanken-Aktiengesellschaft), has 15 branches in towns and cities across
Romania and employees more than 300 staff. The bank’s strategy in Romania is
driven principally by the potential of SME segment, where there is still
serious need of finance from banks.
The SME Facility was launched in 1999 under the Phare Programme – the main
channel for the EU's financial and technical cooperation with the EU accession
countries – with the EBRD, to encourage the growth and development of SMEs by
providing access to loans, leasing and equity finance from local financial
intermediaries. The budget for the Phare Programme as a whole is about €1.5
billion a year.
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