Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) recently facilitated significant financing agreements in Romania, amounting to over EUR 170 million, aimed at addressing specific challenges faced by students and small to medium-sized enterprises (SMEs) in the region.
One of the key issues was the lack of accessible financing options for Master's students wishing to study abroad. To tackle this, the EIF signed its first Erasmus+ guarantee agreement in Romania, providing EUR 4.5 million to enable FINS, a non-banking financial institution, to offer loans with favorable conditions to approximately 450 students. This agreement allows students to cover both tuition fees and living costs, addressing the financial barriers that often prevent them from pursuing higher education opportunities in other EU countries.
In addition to supporting students, the EIF also focused on enhancing access to finance for SMEs through three COSME Loan Guarantee Facility agreements with local banks. These agreements, totaling EUR 168 million, are designed to provide new debt financing to nearly 3,000 SMEs. The support allows financial institutions to extend loans with reduced collateral requirements and to target higher-risk businesses, thereby fostering growth and innovation within the Romanian economy.
The results of these initiatives are expected to significantly improve the financial landscape for both students and SMEs in Romania, promoting social mobility and economic development. The EIF's efforts not only facilitate educational opportunities for students but also strengthen the competitiveness of SMEs, which are crucial for job creation and economic growth in the region.