The European Investment Bank (EIB) is granting a EUR 100 million loan to CEC Bank Romania to co-finance projects to be carried out by SMEs, mid-caps and public sector companies in the industrial and services sectors, including tourism and infrastructure, said EIB in a statement.

Mr Mihai Tanasescu (pictured), EIB Vice-President responsible for lending operations in Romania, stated: “EIB funds, intermediated through CEC Bank, a well-established partner financing institution of the EIB, will help to increase the competitiveness of Romania. The loan is designed to support mainly SMEs, which are the backbone of the Romanian economy in terms of both employment and economic growth.”

This loan is in line with the EIB’s priority of improving European SMEs’ access to affordable finance for their activities. To that end, the EIB is joining forces with financing institutions like CEC Bank that know the local market and have SMEs, mid-cap companies and public entities as their customers.

The current project builds on the EIB’s successful cooperation with CEC Bank. In 2013 the EIB provided a EUR 45 million loan to CEC Bank, which has been successfully allocated to support projects undertaken by Romanian SMEs and mid-cap companies.

Mr Radu Gratian Ghetea, CEC Bank President, declared: “By signing this new agreement, CEC Bank is continuing with its policy of supporting SMEs, mid-cap companies and local public administration authorities (LPAAs) that intend to implement investment projects in various areas. The previous EIB loan has been successfully allocated in support of Romanian companies, and that is why I can safely say that today’s agreement will help our customers to develop in this competitive environment and CEC Bank to increase its lending in this segment”.

Under the previous agreement with the EIB, CEC Bank helped to finance the implementation of projects involving more than 100 SMEs in various fields such as manufacturing, agriculture, trade, services, construction and green energy production.

Currently the EIB is financing Romanian SMEs through 14 financial intermediaries operating in both the public and private sector. This enables the EIB to channel its attractive financing terms to a wide range of promoters of small projects. In 2013 alone, the EIB granted EUR 174 million in SME financing, benefiting SMEs employing some 41 000 people.

The EIB supports SME investments in Romania under the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs in a difficult economic environment. These funds support growth by fostering economic restructuring, consolidation and diversification, as well as enhancing long-term competitiveness through the increased availability of long-term credit.