EBRD to establish micro-credit institution

The European Bank for Reconstruction and Development (EBRD) is in technical talks with several partners from the Romanian financial system with a view to establishing a micro-crediting institution, Salvatore Candido, director of EBRD delegation in Romania, told Ziarul Financiar.

According to Salvatore Candido, this institution might become operational by the end of the year. “We have not decided yet whether it will work like a bank from the very beginning.

The experience we have gained in other Central European countries proves that starting with a financial company, founded as a stock company, would be more practical,” Candido stated.

He specified that discussions were progressing quite fast. The new financial institution will exclusively aim at granting micro-credits.

The director for Romania of the European Bank for Reconstruction and Development says the variant of establishing a financial company, at least in the first stage, would hurry up the beginning of operations. “Later on, we might submit a request in order to receive the banking licence from the National Bank of Romania (NBR),” Salvatore Candido said.

“It is certain that we want to do more for Romania, especially to support the development of small and medium-sized companies. And as we cannot do it directly, we are trying to create some tools for granting specialised loans,” Candido said.

He maintains that the institution he represents is committed to further support the development of a sound and competitive financial field in Romania.

The European Bank for Reconstruction and Development has invested 1.7 billion euros so far, by financing about 60 projects. The bank also holds shares in Ion ?iriac Bank, Alpha Bank, Romanian Development Bank (BRD-Societe Generale) and in the investment funds Danube Fund and Romanian Post-Privatisation Fund.

The European Bank for Reconstruction and Development has granted two credit lines for small and medium-sized enterprises through Banca Transilvania and the Romanian Commercial Bank (BCR).

It also finances a programme for facilitating foreign trade, having teamed up for this project with Demirbank and RoBank.