BANCA TRANSILVANIA - CREDIT LINE FOR SMES

Location:

Romania

Project number:

32209

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

20 May 2003

Status:

Completed

PSD disclosed:

13 Mar 2003

Project Description

The proposed project is a credit line for up to €5 million in two tranches to BT to be on-lent by BT to Small and Medium Sized Enterprises (SMEs) in Romania. The proceeds of the credit line will be used by BT to provide medium-term financing to SMEs for production, investment, trade, services and working capital needs. The sub-loans would be denominated in various currencies depending on customers’ demand.

Transition Impact

Transition impact potential derives from the demonstration effect associated with supporting the growth of SME lending which is still underdeveloped in Romania. Development of a SME lending market will further build up on the successful implementation of the first two SME Facilities (I & II) granted by the EBRD in December 1999 and January 2002, respectively. It would also contribute to the development of financial markets by providing medium-term financing. Supporting the growth of BT and the diversification of its funding base will strengthen the banking sector by providing much-needed medium-term financing for SMEs and thus increasing competition.

The Client

BT is one of the medium sized Romanian banks, with a 1.9 - 2% market share of total banking assets at end-2002, total assets of some US$ 254 million, total equity of US$ 46.7 million and net profit of US$ 13.3 million (RAS, unaudited). EBRD is the largest shareholder in BT holding 15%. Other shareholders include Financial Investment Company (SIF) Banat-Crisana (4.99%), Financial Investment Company (SIF) Oltenia (4.68%), Romanian Investment Company Cyprus (4.99%), Ciorcila Horia (4.94%) and many other small shareholders with less than 5% shareholding each (in total 65.37%).

EBRD Finance

A multi-currency loan for up to €5 million extended by the Bank to BT.

Project Cost

€5 million.

Environmental Impact

BT will continue to operate in accordance with EBRD's "Environmental Procedures for Local Banks". In implementing these procedures, it will require its borrowers to comply, at a minimum, with national/local health, safety, environmental, and public consultation requirements.

Technical Cooperation

BT is presently benefiting from technical assistance granted by the EBRD and funded by EU/Phare under the SME Facilities I & II. The program is under implementation until 16 April 2003.
 
No new technical assistance is envisaged for the proposed project.

Company Contact

Ms Gabriela Blaj
Program Manager
Banca Transilvania SA
Str. Gh. Baritiu nr. 8
3400 Cluj Napoca, Romania
Tel: +40 264 40 71 50
Fax: +40 264 40 71 72
E-mail: Gabi.Blaj@bancatransilvania.ro
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.

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