The EBRD is joining forces with the IMF, EU and the World Bank Group in support of Romania.
The EBRD will increase its investments to the country by an additional €500 million to €1 billion over the next two years as part of an international €20 billion financial support package. Approximately half of this amount will be dedicated to the financial sector, and the rest invested across the broader economy, including in the corporate, energy and energy efficiency and national and municipal infrastructure sectors.
The international funding package will aim to cushion the effects of the sharp drop in capital inflows while implementing policy measures to address the external and fiscal imbalances and to strengthen the financial sector.
EBRD President Thomas Mirow said: "The international financial institutions are working together to find practical, efficient and timely solutions to the crisis in eastern Europe. We are acting jointly in Romania now in order to stimulate the Romanian economy and shore up confidence in these exceptional global circumstances and give a new momentum to structural reforms”.
The EBRD is assessing the financing and capital needs of the Romanian banking sector on a case-by-case basis. With the aim of easing the impact of the crisis and ensuring continued availability of funding to SMEs, the EBRD provided a €100 million loan to Banca Transilvania, one of the country’s leading local SME banks, in December 2008. The Bank is currently progressing with a similar transaction for another major bank active in the country.
In February 2009, the largest multilateral investors and lenders in Central and Eastern Europe - the EBRD, the EIB Group, and the World Bank Group - pledged to provide up to €24.5 billion to support the banking sectors in the region and to fund lending to businesses hit by the global economic crisis.
The current EBRD commitments in Romania stand at €1.9 billion in 110 projects.