New financing for small businesses outside capital Bucharest
The EBRD is extending a €20 million loan to BT Leasing to broaden access to finance for Romanian micro, small and medium-sized enterprises (MSMEs), especially those outside large metropolitan areas.
BT Leasing is among the top leasing companies in Romania and fully owned by Banca Transilvania, the country’s second-largest bank. The firm will use the EBRD’s loan to finance new leases for local MSMEs, the backbone of the country’s economy.
“The EBRD is committed to supporting the development of the leasing market in Romania as part of its efforts to broaden access to finance for local companies. These new funds, channelled through our longstanding partner BT Leasing, are aimed at small businesses across the country where financing is needed most, in particular outside Bucharest and other large cities,” said Matteo Patrone, EBRD Regional Director for Romania and Bulgaria.
BT Leasing has a strong focus on MSMEs. Its long-term objective is to become Romania’s leading leasing company, which will especially benefit regional businesses. The new financing is the EBRD’s fourth loan for the firm, with cooperation now reaching €45 million.
Ionut Morar, General Manager of BT Leasing, added: “Through this new facility we intend to support the development of as many MSMEs in Romania as possible, the more so as financial leasing is the easiest form of financing for MSMEs. In the first four months of 2017 BT Leasing financed assets for a total amount of €41 million, a 27 per cent increase compared with the same period in 2016. These results show that we are contributing, alongside the other subsidiaries of Banca Transilvania Financial Group, to support for Romanian entrepreneurship.”
Broadening access to finance for Romanian companies through alternative credit channels is among the EBRD’s priorities for the country.
The EBRD is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, strengthening infrastructure through improved efficiency and greater private sector involvement, as well as on restructuring the power sector and increasing energy efficiency and sustainability.
The Bank has invested close to €7.5 billion in the country to date in almost 400 projects.