The financing will enable the company to further support local SMEs as Romania strives to restart and consolidate growth, EBRD said in a statement.
“The loan will also foster the development of the leasing market in Romania, where limited external funding for non-bank financial institutions has historically led to constraints in supporting SMEs,” it said.
BT Leasing was set up in 1995 as Banca Transilvania – one of the key Romanian banks majority owned by local investors – diversified its products with the provision of leasing services, especially to SMEs.
“The EBRD remains committed to supporting the development of the Romanian leasing sector. With this new loan, the Bank is promoting leasing as a flexible alternative for SME finance, in a period when businesses remain vulnerable to persisting liquidity constraints,” said Noel Edison, EBRD Director for Insurance and Financial Services.
Since the beginning of its operations, the EBRD has invested about EUR6 billion in over 315 projects in Romania, mobilizing over EUR11 billion for the projects from other sources of financing.