The European Investment Bank Group, comprising the European Investment Bank (EIB) and its subsidiary, the European Investment Fund (EIF), provided close to EUR 1.9bn of new loans, guarantees and equity investment in Romania in 2017. More than EUR 1.3bn in loans came from the EIB and EUR 551m from the EIF in the form of guarantees and equity investments in small businesses to sustain their growth. The EIB Group’s support for Romania therefore represents some 1.04% of the country’s GDP, placing Romania fifth among EU Member States in this respect, and above the EU average of 0.46%. The group concluded four operations under the European Fund for Strategic Investments (EFSI), which is part of the Investment Plan for Europe.
In 2017, the EIB Group was close to EUR 1.9bn of total commitments, including EIB lending of more than EUR 1.3bn by increasing support from the European Fund for Strategic Investments (EFSI).
EIF guarantees and equity investment amounted to more than EUR 0.5bn, expected to mobilise EUR 1.1bn of investments and supporting 2 400 SMEs and 19 000 jobs in 2017.
The EU bank supported 126 projects in Romania, and its subsidiary, the EIF, supported 56 operations. The total cumulative volume of EIB loans exceeds EUR 13bn since the start of the Bank’s activities in Romania in 1992.
Financing under the Investment Plan for Europe
Support for SMEs and mid-caps
In 2017, the Bank concluded EUR 75m worth of intermediated lending with three EIB partner financing institutions, further improving the access of Romanian SMEs and municipalities to EIB financing.
In this context, the EIB granted the first local currency loan to a Romanian bank, ProCredit Bank S.A., amounting to approximately RON 90m. Dedicated mainly to the investments of SMEs and mid-caps, the transaction marks an important milestone for EIB Group support for the Romanian local banking sector. More than 250 SMEs and mid-caps are expected to be reached through this operation.
The EIF provided SME Initiative guarantees to eight banks, providing loan guarantees and lowering interest rates charged by banks. Over 4 000 SMEs and start-ups in need of finance are expected to benefit from these transactions within the next three years.
In total, the EIF committed EUR 551m in Romania in 2017 through 18 guarantees, two microfinance transactions and one equity operation aimed at raising EUR 1.1bn of financing. Out of this, two transactions benefited from EFSI guarantees. EIF operations supported 2 400 businesses in total and contributed to the creation of some 19 000 jobs in 2017.
Throughout its activity, the EIF has developed a strong relationship with the Romanian Managing Authorities administering EU funds. In 2017, the EIF reinforced its extensive collaboration with the Ministry of Regional Development and Public Administration by signing a EUR 59m agreement to foster the equity investments of SMEs. In addition, the EIF launched a new initiative with the Ministry of Agriculture and Rural Development by signing the first agricultural mandate agreement for EUR 94m from the European Agriculture Fund for Rural Development to support investments by local farmers in Romania.
For further information: EIB Group support for Romania