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The EBRD is increasing the availability of financing to the real economy in Romania with a EUR 20 mn credit line to Millennium Bank Romania for on-lending to small and medium-sized enterprises (SMEs).
The funds will be used for mid-term financing of investment projects or short term working capital loans, including revolving credit lines and overdraft facilities.
Majority-owned by Banco Comercial Portugues, the largest privately-owned bank in Portugal, Millennium Bank Romania is a universal bank providing a full range of services to retail and corporate customers. Since its establishment as a greenfield operation in 2007, Millennium Bank Romania has developed well and has expanded its branch network throughout the country to reach 74 units.
The EBRD loan, extended under the EU/EBRD SME Finance Facility*, will support continuing lending to the private SME sector in Romania during a period of restricted access to finance. The credit line will be complemented by EU grants, including technical assistance funds to support the implementation of the Facility and SME outreach.
'This transaction will bring more financing to small and medium-sized businesses in Romania, supporting their development at a time when access to finance remains limited. The EBRD credit line will boost competition in the banking sector and help encourage new lending activities', EBRD Director for Financial Institutions, Jean-Marc Peterschmitt said.
'The agreement with the EBRD is of strategic importance for Millennium Bank Romania. This loan facility provides us with an additional source of funding to offer to our clients and confirms our commitment to support the development of the Romanian SMEs lending', stated Jose Toscano, CEO of Millennium Bank Romania.
This is the first transaction between the EBRD and Millennium Bank Romania, within the wider context of EBRD's cooperation with Millennium bcp, the Portuguese group that includes Millennium Bank Romania.
*The EU/EBRD SME Finance Facility, a joint programme of the European Commission and the EBRD, supports the development and growth of entrepreneurs by facilitating their access to finance. To date the Facility comprises of €1,209.2 million of EBRD financing, supported by EC grant funding from the Phare programme of €180.75 million. The Phare programme is the main channel for the EU's financial and technical cooperation with accession countries. For further information, see: http://europa.eu.int/comm/enlargement.
Since the beginning of its operations in Romania the EBRD has committed over €4.7 billion across more than 270 projects, which attracted additional investment of €8.3 billion.
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The EBRD, owned by 61 countries and two intergovernmental institutions, is supporting the development of market economies and democracies in countries from central Europe to central Asia. www.ebrd.com
Millennium Bank, part of the leading financial private group in Portugal, Millennium bcp, has a wide network covering all regions of Romania and offers an extended corporate product portfolio. www.millenniumbank.ro.
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