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EBRD, EU and CEC support SMEs across Romania
€10 million Bank loan gives entrepreneurs more access to finance
The EBRD is lending Casa de Economii si Consemnatiuni (CEC), the state-owned
bank in Romania, €10 million to support the country’s small and medium-sized
enterprises (SMEs).
Entrepreneurs can draw up to €125,000 per each loan from CEC under the
agreement. Hildegard Gacek, EBRD Director for Romania, said CEC bank is a
strong supporter of SMEs in Romania. The Bank’s loan will enable CEC to meet
local entrepreneurs’ growing demands for finance, and it reiterates the EBRD’s
commitment to supporting the SME sector, said Ms Gacek. The Bank has, to date,
lent €151.2 million to 11 local banks and leasing companies in Romania for
SMEs alone.
The EBRD loan is part of the EU/EBRD SME Finance Facility, a programme of the
EU in cooperation with the EBRD to promote SME growth and development across
the EU accession countries. The Bank’s loan is being complemented with a grant
of €1.6 million from the European Commission for technical assistance and
other incentives to support staff training and to ensure successful
implementation of the programme.
Jonathan Scheele, Head of the Delegation of the European Commission to
Romania, said “CEC is a very good channel to reach SMEs located all over
Romania due to its wide branch network. The Romanian economy needs continued
growth, and SMEs are a key driver of economic progress.”
With its headquarters in Bucharest, CEC has 1,407 branches and sub-branches
throughout Romania, giving it a wide reach among the country's population of
over 22 million. Eugen Radulescu, President of CEC, said that “business with
the SME sector is a core part of CEC’s strategy, and this loan will support
our growth in this important area. We are very pleased to start our
co-operation with the EBRD and we are also grateful for the assistance of the
EU in this project.”
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. The Bank is making available €1.1 billion for the
facility, of which €895 million has been committed to signed projects to date.
The EC has been contributing €156.75 million in grant financing and for
technical assistance since the launch of the programme in 1999.
The EBRD is the largest investor in Romania, having invested more than €2.8
billion through 150 projects.
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