With a contribution of €100 million from the European Regional Development Fund (ERDF), the SME initiative aims to boost the development of Romanian small businesses via new and innovative ways to invest Cohesion Policy funds.
Over 4,300 Romanian SMEs, micro companies and start-ups will benefit from improved access to finance under these agreements, by ensuring that the banks committed to the SME Initiative offer financing at lower interest rates. They should generate a total of €246 million of funding for small businesses in the country, covering close to half of the target €540 million of total financing available under the Romanian SME initiative programme. These three transactions were signed less than a year after the launch of the initiative in Romania.
The European Investment Fund (EIF), part of the European Investment Bank Group, has signed the first SME Initiative guarantee transactions in Romania, with the following commercial banks: Raiffeisen Bank, Banca Comerciala Romana (BCR) and ProCredit Bank.
The contribution of Romania, alongside the EU central budget (resources from the Horizon 2020 Programme) and EIB Group funds allocated to the Programme, will be leveraged with commercial lending through a risk-sharing mechanism. This will result in more SMEs benefiting from European resources on advantageous terms, such as reduced interest rates and improved collateral requirements. This financial instrument will act as a catalyst for private investment and foster job creation within the SME community.
EIF – The European Investment Fund is part of the EIB Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
EIB – The European Investment Bank is the EU’s long-term lending institution and is owned by the EU Member States. It makes long-term finance available for sound investment, contributing to growth, jobs, regional convergence and climate action in Europe and beyond.
The SME Initiative is a joint financial instrument of the European Commission and the EIB Group. It was designed as a fast and effective response instrument to increase lending to the real economy, create jobs and stimulate growth.
The European Commission adopted the Operational Programme SME Initiative for Romania on 23 March 2016 to boost the competiveness of Romania’s micro, small and medium-sized businesses through increased access to finance.
The aims of this intervention is to facilitate the access to finance for the Romanian SMEs. In order to enhance the competitiveness of Romanian SMEs, the programme puts a special focus on innovative activities, including through setting up a minimum sub-portfolio corresponding to the Horizon 2020 eligibility criteria.
Funding made available under this programme is complementary to the financing provided by other existing programmes, to support SMEs at national and European level, thus facilitating and maximising their synergies. The improved access to finance for Romanian SMEs will enhance their productivity, innovativeness, the capacity to grow on regional, national and international markets and to engage in innovation processes.