Alpha Bank wants to fund municipalities

Alpha Bank Romania will start to fund medium-sized municipalities this year, says Radu Ghetea (photo), vice-chairman of the bank. In order to sustain this project, the bank contracted a special line of credit from EBRD. “We”ll see to what extent funding for small and medium-sized municipalities is possible. We also have a credit line from EBRD and we want take advantage of this,” Radu Ghetea told ZF. The line of credit granted by EBRD stands at a total of 20 million euros, with the funds to be used over a three-year period. This line of credit allows municipalities to be granted funding worth 150,000 to 4 million euros. “If there will be demands for a higher level of funding, we will bring in our on funds, as well,” adds Ghetea. Alpha Bank, traditionally oriented towards the corporate market, has tried to diversify its business since last year, in order to make up for lost ground on the retail sector. Ghetea says results for the first three months of 2006 are “very good” and will be officially released in the middle of the month. ZF