Garanti Bank Romania is taking up to EUR 50 million from the European Investment Bank (EIB) to finance projects promoted by small and medium-sized enterprises, mid-cap companies and public sector entities in Romania.

The EIB loan is focused on supporting companies that have a positive impact on the unemployment rate in the country.

“The loan agreement signed today is in line with the EIB lending priority to ease access to long term financing for SMEs and mid-cap companies which are the backbone of the Romanian industry and have been hit significantly by the financial market fragmentation. In cooperation with Garanti Bank, a new partner of the European Investment Bank, EIB funds will support investments undertaken mainly by SMEs under favorable terms, strengthening the competitiveness of this important economic sector,” said Mihai Tanasescu, EIB vice-president responsible for lending operations in Romania

This loan is the first EIB collaboration with Garanti Bank Romania, and is being provided 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 order to diminish the effects of the financial crisis.

Currently, Garanti Bank has more than 25,000 SME clients and over 3,000 corporate customers. In 2013, the SME loans had the highest increase in the bank’s loans portfolio, of 17 percent.

The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. So far, the EIB has active cooperation with 11 partner financing institutions in Romania and has provided credit lines totaling some EUR 1.3 billion.

Garanti Bank Romania is part of the financial-banking group Garanti Romania, which also includes Garanti Leasing and Garanti Consumer Loans. Garanti Bank is a universal bank held by Turkiye Garanti Bankasi AS.

Irina Popescu, irina.popescu@romania-insider.com