Investment & Fund Management
European Investment Fund Partner
Full Credential Description
The SME Initiative in Romania was launched to address the significant financing challenges faced by small and medium enterprises (SMEs) in the country. Romanian SMEs often struggle with access to finance, which hinders their ability to innovate, grow, and create jobs. To combat this issue, the initiative was designed to provide a 60% guarantee on loans issued by participating banks, thereby reducing the risk for lenders and lowering interest rates for borrowers.
The initiative involved five major banks: Raiffeisen Bank, ProCredit Bank Romania, Banca Comerciala Romana, Banca Transilvania, and BancPost. These banks are expected to collectively support approximately 3,700 SMEs and start-ups in need of financial assistance. The financial structure of the SME Initiative combines European Structural and Investment Funds (ESI Funds) with resources from the EU's Horizon 2020 Programme and the EIB Group, creating a risk-sharing mechanism that enhances the lending capacity of these banks.
As a result of this initiative, Romanian SMEs will benefit from improved access to finance on more favorable terms, which is anticipated to catalyze private investment and foster job creation within the SME sector. The initiative is part of a broader strategy by the European Commission and the EIB Group to enhance the competitiveness of Romania's micro, small, and medium-sized businesses through increased financial support. The successful implementation of the SME Initiative is expected to serve as a model for other EU member states, demonstrating the potential of leveraging EU funds to stimulate local economies.