BCR has signed with the EIB a new Loan for SMEs financing amounting to EUR 75 millions

Banca Comerciala Romana (BCR) has signed with the European Investment Bank (EIB) a new loan agreement of EUR 75 million for financing SMEs, mid-caps and public sector projects. The EUR 75 million represents a second tranche which brings to EUR 150 million the total loans form SMEs signed between EIB and BCR since 2009, said the bank in a press release.rnrn“Over the last two years, the situation has been difficult for companies and public sector authorities. Many investments projects were frozen and that deepened the economic downturn. Today, Romania is slowly coming out of recession. Clients need to overcome the confidence crisis and restart investments. Banks need to adapt their strategies and seek to provide easier access to financing. Together with EIB, BCR is doing just that: we provide accessible financing to help kick-off investments, enhance productivity and support employment,” Wolfgang Schoiswohl, Corporate Vice-President of BCR said.rnrnThe financing from EIB funds is available to a large category of beneficiaries falling in the following situations:rnSMEs, small mid-caps and public sector authorities looking to develop projects in sectors such as industry, tourism, services and agriculture; clients would be able to apply for financing of up to EUR 12.5 million for projects worth up to EUR 25 million;rnlarge mid-caps looking to finance up to 50% of eligible project expenditures amounting to a total greater than EUR 25 million and up to EUR 50 million.rnrn”BCR’s agreements with EIB effectively turn into loans for the real economy. We have financed companies in agriculture, production, tourism, transportation and many other sectors from EIB sources. Over 75% of EIB funds are allocated to projects developed with European Funds. Our successful cooperation is supporting the sustainable development of SMEs in Romania and the absorption of EU funds,” stated Ramona Ivan, Director of BCR’s Financial Institutions Division.rnrn BCR is currently the financial intermediary for two EIB facilities:rnthe EIB Intermediated Loan (contracted in November 2006) amounting to EUR 50 million, of which over 100 projects developed by small and middle sized enterprises in Romania have already been financed;rnthe EIB Loan for SME contracted in December 2009, amounting to EUR 75 million of which over 80 projects developed by small and middle sized enterprises in Romania have already been financed; rnrnSince 2000, BCR has been involved in supporting Romanian SMEs develop viable projects through competitive financing schemes, together with international partners such as the EIB, EBRD, IFC etc. BCR has financed so far over 10,000 such projects, for which the total co-financing value surpasses EUR 1 bn. rnrnThe main mission of the European Investment Bank (EIB), the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investment. rnrnThrough its credit lines to financial institutions, the EIB funds projects usually implemented by SMEs (with fewer than 250 employees) and by mid-cap companies or municipalities. To increase the access of SMEs to long-term financing, the EIB closely cooperates with local financial institutions that have local market expertise, particularly in providing services to businesses through a well-developed network. Since 1990, the EIB has signed loan contracts in Romania amounting to some EUR 8.2 billion, of which some EUR 780 million has supported SME projects, including the current loan.