Investment & Fund Management

The EIB Group (European Investment Bank and European Investment Fund) has partnered with the Government of Romania and the European Commission to implement the SME Initiative in Romania, aimed at supporting Small and Medium Enterprises (SMEs). The initiative is expected to provide approximately EUR 540 million in new SME financing, leveraging a EUR 100 million contribution from Romania's European Structural and Investment Funds (ESI Funds) through a risk-sharing mechanism with commercial lending.

This innovative financial instrument is designed to enhance access to finance for SMEs by offering advantageous terms such as reduced interest rates and improved collateral requirements. The SME Initiative is a response to the challenges faced by Romanian small businesses, aiming to stimulate job creation and economic growth. The combination of ESI Funds, EU Horizon 2020 resources, and EIB Group funds allows for risk-sharing and capital relief for financial intermediaries, ultimately benefiting SMEs.

The initiative is part of a broader strategy by the European Commission and the EIB Group to encourage Member States to effectively utilize ESI Funds through financial instruments, with the goal of doubling their investment in the 2014-2020 period. The operational program for the SME Initiative in Romania was adopted in March 2016, focusing on boosting the competitiveness of micro, small, and medium-sized businesses by increasing their access to finance.