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More EBRD lease financing for Romanian SMEs
New €5 million loan to BT Leasing Transilvania
The EBRD is extending a new €5 million loan to Romania’s BT Leasing Transilvania IFN (BTL), a subsidiary of Banca Transilvania (BT), to finance small and medium-sized enterprises (SMEs) across the country. This loan follows two similar loans to BTL in 2003 and 2006.
The EBRD loan will enable BTL to continue to on-lend finance of up to €125,000 to new SME clients. The loan is being provided under the leasing window of the EU/EBRD SME Finance Facility, funded jointly by the EU and the EBRD.
Kurt Geiger, EBRD Business Group Director for Financial Institutions, said that Romanian SMEs need access to more affordable financial mechanisms and the development of this segment is critical for the economy. The project will have a demonstration effect for other leasing companies that are envisaging entering or deepening their presence in the SME leasing market.
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 this regional project covering 11 countries, the EBRD will make available funding of €1.35 billion, of which €1,176.5 million has been committed to signed projects to date.
The European Commission has contributed €181 million in grant financing and technical assistance since the launch of the EU/EBRD SME Finance Facility in 1999. The Phare programme was the main channel for the EU’s financial and technical cooperation with accession countries.
BTL has a proven track record in financing SMEs and has demonstrated strong growth while maintaining a high quality lease portfolio. The company’s long-term sustainability as an SME sector financier is supported by backing from the ultimate shareholder, BT, in which the EBRD has a 15 per cent stake.
Titus Nicoara, General Director of BTL, said that BTL is a leading national lease finance provider in Romania and this loan will continue to assist the company’s target to further develop the large SME portfolio in the micro and small business sector across the country. This will in turn help strengthen the country’s economy, said Nicoara.
Ionuţ Pătrăhău, Deputy General Manager of Banca Transilvania, said that as a major shareholder in BT Leasing, Banca Transilvania will continue to support BTL’s efforts to serve the development needs of SMEs. We believe that Banca Transilvania’s focus on SMEs and its confidence in the Romanian entrepreneurial spirit is examplary, Mr Pătrăhău added.
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