Supporting Romanian firms affected by war on Ukraine

By Vanora Bennett

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  • EBRD lends €25 million to Banca Transilvania to support flow of credit to Romanian economy
  • Loan will support the bank in on-lending to businesses impacted by war on Ukraine
  • EBRD has pledged €2 billion to support companies and countries affected by the war

The EBRD is lending €25 million to Banca Transilvania, Romanian’s largest systemic bank, to support its on-lending to businesses in the challenging economic environment caused by the war on Ukraine and help it continue supporting the economy.

The loan falls within the EBRD’s €2 billion Resilience and Livelihoods framework which supports companies and countries directly or indirectly affected by the war on Ukraine.

The Romanian economy has been negatively affected by spillover effects including inflation – consumer prices were up 15.1 per cent year on year in June, while producer prices rose 48.1 per cent – and strained supply chains and logistics infrastructure, affecting a wide spectrum of economic sectors.

The loan will also comply with the European Union’s Bank Resolution and Recovery Directive, helping Banca Transilvania achieve its regulatory targets.

Banca Transilvania is Romania’s largest bank by total assets, with a network of about 500 branches at the end of 2021.

The bank is listed on the Bucharest Stock Exchange with more than 60 per cent of its capital held by Romanian investors. Its resilience promotes stability for the local banking sector overall, while the bank plays a major role in facilitating financing for local businesses, safeguarding the resilience of their human capital and sustaining the livelihood of the entrepreneurs and that of their workforce.

The EBRD is a major institutional investor in Romania. To date it has invested almost €10 billion in 493 projects in the country. An EBRD priority in its work in Romania is to diversify and deepen the financial system and strengthen its resilience.

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