Investment & Fund Management

The European Investment Fund (EIF) has successfully signed the first SME Initiative guarantee transactions in Romania, collaborating with Raiffeisen Bank, Banca Comerciala Romana (BCR), and ProCredit Bank. This initiative addresses the critical issue of access to finance for over 4,300 Romanian SMEs, including micro companies and start-ups, by enabling these banks to offer financing at lower interest rates. The total financing generated through these agreements amounts to EUR 246 million, which is a significant step towards the target of EUR 540 million set for the initiative.

The SME Initiative Programme, launched in October 2016, is funded by EUR 100 million from European Regional Development Funds (ERDF) and aims to leverage additional resources through a risk-sharing mechanism. This innovative approach combines EU central budget resources, including those from the Horizon 2020 Programme, with EIB Group funds, thereby enhancing the financial support available to SMEs. The result is a more favorable lending environment, characterized by reduced interest rates and improved collateral requirements, which is expected to catalyze private investment and foster job creation within the SME sector in Romania.

The swift execution of these transactions, occurring less than a year after the initiative's launch, highlights the commitment of the EIF and its partners to bolster the Romanian business landscape. The initiative not only supports the financial needs of SMEs but also contributes to the overall competitiveness and economic growth of the region, as emphasized by various stakeholders, including the EIF Chief Executive and the Vice Prime Minister of Romania.