The European Bank for Reconstruction and Development (EBRD) is launching a new risk-sharing product for Romanian banks, with Banca Transilvania and Raiffeisen Bank the first to benefit.

The facilities to both Banca Transilvania and Raiffeisen Bank are provided on an unfunded risk participation basis, which makes it more akin to a guarantee. The EBRD will guarantee up to 65% of each individual sub-loan provided by the two lenders to eligible clients.

Its commitment under the respective agreements could reach up to EUR 150 mln to Banca Transilvania and EUR 100 mln to Raiffeisen Bank.

“We want to ensure that `businesses in Romania have access to a more diverse range of financing sources that suit their needs,” said Mark Davis, EBRD Regional Director for Romania and Bulgaria. 

(Photo: Kittichai Boonpong/ Dreamstime)

andrei@romania-insider.com