EBRD considering 100m-euro loan to BCR, dedicated to SME funding

The European Bank for Reconstruction and Development (EBRD) is considering a 100 million-euro loan to Banca Comerciala Romana (Romanian Commercial Bank – BCR) for funding small and medium-size enterprises. The funds will be used for medium and long-term SME lending, and are meant to cover production, investments, trade, services, and working capital needs, according to an EBRD release. Funding for SMEs is limited at the moment, but the implementation of credit lines granted by the European financial institution will improve the access of small entrepreneurs to loans. BCR had a portfolio of loans granted to SMEs worth 2.6 billion euros at the end of 2008 – i.e. a 20% market share on this segment. The number of such clients- individuals and companies, amounted to 4.5 million at the end of December. The EBRD granted a 100 million-euro loan to Banca Transilvania in December 2008, designed to support SMEs. The EBRD is the largest institutional investor in Romania, being involved in the energy, infrastructure, transport and financial sectors. The institution has 248 investments underway, worth 10 billion euros in total, with 70% of the funds being destined to the private sector.