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EBRD, EU and OTP Bank Romania help SME sector
Entrepreneurs to benefit from €10 million EBRD loan
Entrepreneurs across Romania will have more access to finance to build or
expand their businesses with the help of a €10 million EBRD loan to OTP Bank
Romania, a subsidiary bank of OTP Bank Group of Hungary. The loan will be used
by OTP Bank Romania to onlend to the private sector. Loans to micro business
owners, typically employing up to 10 people, will not exceed €30,000, while
small and medium-sized businesses, employing up to 249 staff, will be eligible
for loans of up to €125,000.
The EBRD loan is being complemented by a €1.5 million grant from the European
Commission that will help implement the project and support, for example the
training of SME loan officers. The project is part of the EU/EBRD SME Finance
Facility, a joint programme of the European Commission and the EBRD,
supporting the development and growth of entrepreneurs in 11 countries of
Central and Eastern Europe.
The EU/EBRD SME Finance Facility, a joint programme of the European Commission
and the EBRD, supports the development and growth of entrepreneurs by
facilitating their access to finance. Under the programme, the Bank will make
available funding of €1.1 billion, of which €999.5 million has been committed
to signed projects to date. The EC has contributed €156.75 million in grant
financing since the launch of the programme in 1999. For further information
about the Phare programme, the main channel for the EU’s financial and
technical cooperation with accession countries, see:
http://europa.eu.int/comm/enlargement.
The EBRD is one of the largest investors in Romania, having committed €3.1
billion in more than 170 projects.
Jean-Marc Peterschmitt, EBRD Director for Bank Relationships, said OTP Romania
is a partner for the Bank in reaching out to the grassroots economy. By
sharing a similar philosophy, we are helping to nurture a crucial part of the
private sector which will in turn help strengthen the local economy, he said.
Furthermore, as EU membership approaches for Romania, entrepreneurs will gain
access to more money to help them become more competitive in the single
market, he added.
OTP Bank Group, one of the most profitable financial groups within the region,
acquired the Romanian bank in 2004 (established in 1995 as RoBank). Today, OTP
Bank Romania employs around 630 staff in 46 branches across the country. This
latest loan builds on cooperation between the Bank and the OTP Bank Group,
which has, to date, received €100 million in EBRD loans.
OTP Bank Romania is strategically oriented towards the SME sector and
therefore the co-operation with the EBRD is of significant importance for us,
said Frigyes Harshegyi, CEO, OTP Bank Romania. We will continue to develop our
long term financing for this sector and technical assistance provided thanks
to the support of the EU will enhance our efforts, he added.
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