The EBRD will use the program to invest around EUR3-4 million as equity capital in SMEs and grant loans of EUR5-6 million to small businesses.
James Hyslop, the EBRD’s country manager for Romania, on Thursday said the LEF is an important program, as it represents a direct financing facility for the SMEs, mostly midcap companies.
Hyslop added that the EBRD, which also works with investment funds, is willing to invest “up to EUR10 million” in Romanian Foundations SME Fund, an investment fund that supports Romania’s SMEs sector.
According to Hyslop, the EBRD believes the SMEs remain a key factor of the Romanian economy.
The Local Enterprise Facility is a EUR405 million proprietary vehicle for investments in SMEs in the Balkans (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo, Montenegro, Romania and Serbia). The LEF provides various financing instruments such as senior and junior debt, quasi-equity and equity capital, all tailored to fit the needs of the company.