A number of Romanian banks have signed up to the SME initiative driven by the European Investment Bank and European Investment Fund (EIB Group), to provide up to €540m (£476m) for SMEs.
The deal with the EIB Group, the Romanian government, and the European Commission will provide a 60% guarantee on each loan provided by Raiffesien Bank, ProCredit Bank Romana, Banca Transilvania, and BancPost to SMEs.
The interest rate charged on each loan will be lowered, and the agreement is expected to reach approximately 3,700 SMEs and start-ups in the country.
Andrew McDowell, EIB vice-president, said: “These five banks are significant SME lenders in Romania and via the SME Initiative will be crucial partners in providing support for entrepreneurs. We are confident that these agreements will deliver lasting benefits to Romanian businesses.”
This agreement follows a series of SME funding projects in Romania recently, led by the EIF providing €246m through commercial banks in May, and an EBRD loan of €20m to BT Leasing last week.
European Commissioner for Regional Policy Corina Creţu, said: “Romanian entrepreneurs are talented and Romanian small businesses are competitive, but they often need an additional boost in order to develop innovative products, enter global value chains and create jobs in the country.”