During the financial crisis, Romania used financing from EIB or the European Bank for Reconstruction and Development.
Banks were a large beneficiary of the funds from foreign financing institutions over the past years, absorbing hundreds of million euros that should have supported lending. Hence, despite the boost of loans in Romanian lei, total lending remained in negative territory by the half of 2015, on the backdrop of reducing the stock of loans in foreign currency.
BCR, BRD-SocGen, Banca Trasilvania, CEC Bank, UniCredit Țiriac Bank, Raiffeisen Bank, ING Bank, Garanti are among the banks benefiting from financial support from EIB over the last five years.
The largest amounts that EIB granted to local banks were BCR, with EUR175 million, CEC Bank, with EUR145 million, UniCredit Tiriac Bank, with EUR140 million and BRD-SocGen, with EUR100 million.
In 2014, Banca Transilvania, the third largest bank on the local market, received the approval for a EUR150 million loan from EIB but actually received a EUR75 million loan. The amount is meant to support projects in the industry, services, agriculture and infrastructure services initiated by small and medium-sized enterprises SMEs, companies with average capital on the bourse as well as public entities in Romania. The financing is part of an action plan for the development in Central and Southeastern Europe Europa, focusing on financing the SMEs. These loans are part of EIB’s program “Skills and Jobs – Investing for Youth“, initiative supporting youngsters employment.
In 2014, CEC Bank attracted a EUR100 million loan from EIB to co-finance the projects developed by SMEs, medium-sized companies in industry, services, tourism and infrastructure as well as public local administrations.
Last year, EIB granted a total of seven loan totaling EUR355 million to finance projects promoted by small and medium-sized enterprises in Romania.
Also, EIB granted total loans of EUR590 million to Romania in 2914, up 11% compared with 2013.
Between 2010-2014, EIB granted EUR733 million to industry, services and agriculture sectors, representing a quarter of the EUR2.8 billion lending during this period.
The transportation and telecommunications sectors received EUR620 million, while loans in the energy sector totaled almost EUR500 million. Total financing worth EUR945 million were directed to small and medium-sized projects.
EIB granted total loans of EUR10.5 billion over the past 25 years.
(English version by Manuela Panescu)