Garanti Bank takes a loan up to 50 mln euro from EIB to finance SMEs projects

The European Investment Bank (EIB) is lending up to 50 million euro to Garanti Bank, money that will be allocated to finance projects run by Small and Medium Enterprises, midcap companies and public sector entities in Romania. The loan is focused on fostering undertakings with positive impact on unemployment in the country.

“The loan signed today is in line with the EIB’s lending priority of easing access to long-term financing for SMEs and midcap companies, which are the backbone of Romanian industry and have been hit hard by the fragmentation of the financial market. In cooperation with Garanti Bank, a new EIB partner financing institution, EIB funds will support investments undertaken mainly by SMEs on favourable terms and strengthen the competitiveness of this important economic sector”, Mihai Tanasescu, EIB Vice-President responsible for lending operations in Romania, commented, according to a press release.

This is the first loan taken by Garanti Bank from the EIB and it is provided under the Joint IFI Action Plan for Growth in Central and South Eastern Europe that enables SMEs in Europe to access long-term financing in order to diminish the impact of the financial crisis.

“Together with the EIB, Garanti Bank aims to offer primarily SMEs and midcaps the possibility to grow and develop their businesses through long-term lending solutions and partnerships. With the right financing and support, SMEs and midcap companies can contribute significantly to the country’s economic recovery”, said Ufuk Tandogan, Garanti Bank’s CEO. 

Garanti Bank has a portfolio consisting of over 25.000 SME clients and more than 3000 corporate customers. Last year, loans in the SME segment grew by 17 percent, recording the biggest increase in its loans portfolio.