Project description
and objectives:
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The proposed project is being developed in co-operation with the European
Commission and the Romanian Ministry for European Integration in order to
improve access to finance for micro and small enterprises (MSEs) in Romania,
including start-up MSEs. The Bank will extend loans directly to commercial
banks and non-bank microfinance institutions which will on-lend funds to MSEs.
Particular emphasis will be placed on reaching out to the smallest of MSEs in
rural areas including economically less dynamic regions. Further objectives of
the project include assisting the non-bank microfinance institutions in their
commercialisation process which will ensure their long term sustainability,
assisting commercial banks to reach smaller MSEs in rural regions as well as
establishing a permanent management capacity in a Romanian public institution
(to be determined) for management of MSE lending programmes.
The overall size of the on-lending facility is up to EUR 52.5 million, of
which up to EUR 40 million will be provided by the EBRD and up to EUR 12.5
million will be provided by the European Commission and the Romanian Ministry
of European Integration. The overall amount of the framework may be increased
further, subject to commercial syndication of some of the loans to commercial
banks. The on-lending funds will be accompanied by EUR 3 million risk-sharing
facility designed to support lending to start-up MSEs and EUR 2.5 million of
technical assistance funds for institution and capacity building. The first
partner lending institution benefiting from the on-lending and TA funds from
this facility is Opportunity Micro Credit Romania who concluded the loan
agreement in december 2006. The Bank is in the process of including with
further potential partner lending institutions.
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Transition impact:
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The transition impact is expected to be high to excellent. The project will
have four main forms of transition impact. Most importantly, it will increase
availability of finance to MSEs, including those MSEs that would not normally
be targeted by financial institutions. Furthermore, it will contribute to the
strengthening and commercialisation of financially viable non-bank MFIs. In
terms of commercial banks, the project will strengthen the institutions by
diversification of the banks’ client base. The last form of transition impact
stems from the building of management capacity in a Romanian public
institution for management of MSE lending programmes.
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The client:
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Well established non-bank microfinance institutions operating as per relevant
microfinance institutions as well as commercial banks committed to lending to
MSEs.
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EBRD finance:
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Up to EUR 40 million.
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Total project cost:
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Up to EUR 52.5 million.
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Environmental impact:
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Screened FI. The selected participating banks (PBs) and non-bank
micro-finance institutions (NBMFIs) will be required to comply with the EBRD’s
Environmental Procedures for Small and Micro Loans; they must ensure that
borrowers are compliant with relevant national regulations and standards for
environment, health and safety and submit Annual Environmental Reports to the
Bank.
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Technical
cooperation:
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The technical co-operation funding made available in support of this new
facility is EUR 2.5 million.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Jana Sivcova
e-mail: sivcovaj@ebrd.com
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EBRD contact:
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Jana Sivcova, Operation Leader: sivcovaj@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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