The European Investment Bank (EIB) is lending EUR 22.3m to Garanti Bank Romania to support businesses in Romania. EUR 5m of the loan amount is devoted to female entrepreneurs, matched by another EUR 5m from Garanti Bank. This transaction is backed by the European Fund for Strategic Investments (EFSI), the financial pillar of the Investment Plan for Europe, or „Juncker Plan”.
It is expected that the overall loan will benefit some 260 SMEs and mid-caps and support 6,100 jobs. First operation with Garanti Bank increases the number of partner financing institutions in Romania to 16 according to EIB’s press release.
This innovative loan tranche will give female entrepreneurs representing small and medium-sized enterprises (SMEs) and mid-caps access to more favourable financing. To be able to access these loans, companies have to be more than 50% owned by one or more women, or 26% to 50% of the shares have to be owned by one or more women, with a woman acting as the company’s chief executive, operating or financial officer.
Fostering gender equality and diversity is part of the EIB’s goal of ensuring that the projects receiving its financing benefit all members of the community. This operation, the first EIB intermediated loan in the EU specifically backing female entrepreneurs, will support women’s participation as key economic actors and is in line with the EIB’s Strategy on Gender Equality and Women’s Economic Empowerment.
The Juncker Plan was launched in 2015 with the objective of closing the investment gap left by the financial and economic crisis in the EU. In terms of economic growth, it has contributed to increase the EU’s GDP by 0.6% by 2017 and it aims to increase it by 1.3% by 2020.
The Investment Plan for Europe, the so-called Juncker Plan, has three objectives: to remove obstacles to investment; to provide visibility and technical assistance to investment projects; and to make smarter use of financial resources. As such, the plan is made up of three pillars:
- First, the European Fund for Strategic Investments (EFSI), which provides an EU guarantee to mobilise private investment. The Commission works together with its strategic partner, the European Investment Bank (EIB) Group.
- Second, the European Investment Advisory Hub and the European Investment Project Portal which provide technical assistance and greater visibility of investment opportunities, thereby helping proposed investment projects become a reality. The Hub is a joint venture with the EIB Group.
- Third, improving the business environment by removing regulatory barriers to investment both nationally and at EU level.
Total investment in Romania – December 2018
Total financing under the European Fund for Strategic Investments (EFSI) in Romania amounts to €652 million and is set to trigger €2.7 billion in additional investments.
Infrastructure and innovation projects:15 approved projects financed by the European Investment Bank (EIB) with EFSI backing; approximately €536 million total financing; set to trigger €1.399 million in investments
Small and medium enterprises (SMEs): 13 approved agreements with intermediary banks or funds financed by European Investment Fund (EIF) with EFSI backing; €115 million in financing; set to trigger approximately €1.3 billion in investments with some 15,819 SMEs and mid-cap companies expected to benefit from improved access to finance