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EBRD supports regional expansion of Kaufland Romania
€100 million loan to retailer approved by Board of Directors
Romanians in smaller urban centres are set to benefit from a €100 million loan
the EBRD is providing to retailer Kaufland Romania to support the company’s
expansion to the country’s regions. The company has developed a tailor-made
format which will offer consumers a wider variety of choice at competitive
prices. At the same time local suppliers will benefit from the opportunity to
sell their products to Kaufland.
The company, owned by Germany’s Schwarz Group, has established itself as one
of the leading discount retailers in central and eastern Europe. Kaufland
markets are also located in regional areas which are traditionally not served
by large retailers. Products are chosen to suit local preferences and tastes.
Consequently, a large proportion are acquired locally.
The loan to Kaufland Romania follows an extensive due diligence-process of the
company’s practices, including compliance with labour law in several countries
of operations. The process considered in particular questions raised by
Germany’s trade union Ver.di and CEE Bankwatch to determine that the project
is in full compliance with national and international law. This includes the
applicable labour laws. The Bank will continue to draw on independent experts
to monitor compliance with all obligations.
Gilles Mettetal, EBRD Director for Agribusiness, said the loan will expand the
benefits of state-of-the-art retail operations to regions, customers and
producers in Romania which are expected to benefit from increased competition.
Bigger choice will ensure that customers will get value for money. The needs
of modern retailing will be instrumental in bringing food safety and hygiene
standards to EU standards. The EBRD has established a fruitful cooperation
with Kaufland in Poland and is looking forward to repeating this success in
Romania over the coming years, he added.
To-date in the agribusiness sector alone, the EBRD has committed €4.4 billion
in 314 projects across central and Eastern Europe and the Commonwealth of
Independent States.
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