BSTDB extends US$ 4 million loan to DEMiRBANK (ROMANIA) S.A. to stimulate trade in the Black Sea region
Press Release | 18-Oct-2000
The Black Sea Trade and Development Bank (BSTDB) will make available a US$ 4 million credit line to DEMIRBANK (ROMANIA) S.A., which was chosen as the first Romanian bank to be the Financial Intermediary of BSTDB for the purpose of lending trade finance products in Romania. The signing ceremony for the loan agreement took place on October 18, 2000 in Bucharest. The agreement was signed by Mr. Ersoy Volkan, President of BSTDB and Mr. Selcuk Saldirak, President of DEMIRBANK (ROMANIA) S.A. and Ms. Liana Constantinescu, Vice-President of the Bank.
The credit line will be used for short-term trade finance programmes supporting export of value added products to generate more hard currency revenues in Romania. The facility, revolving on 120-day basis, will provide pre-export financing to Romanian exporters. At least 50% of the loan should be used for financing Romanian exports to other BSTDB member countries, thus stimulating trade in the Black Sea region.
This is the second operation of BSTDB in Romania, after the establishment of a Trans Balkan Equity Fund to support small and medium sized enterprises (SME) in July this year, together with International Finance Corporation - IFC - and other reputable international investors.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established in 1998 by eleven countries of the Black Sea region: Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, Ukraine and has its headquarters in Thessaloniki (Greece).The authorized capital of the Bank is SDR 1 billion (about US$ 1.35 billion). The Bank supports economic development and regional cooperation by providing financing for projects and trade transactions to public and private enterprises in its Member States.BSTDB is stepping up its activities in Romania and is targeting as a priority the SME and infrastructure sectors.
DEMIRBANK (ROMANIA) S.A. was established in 1997 as a joint stock company by DEMIRBANK T.A.S./Türkiye, being co-owned - since 1999 - by the IFC, part of the World Bank Group, and by three Romanian Investment Funds. During last 3 years the Bank has gradually increased its business volume in the market and opened 8 branches in Romania in order to spread its services all over the country. The Bank established financial cooperation with International Financial Institutions and many reputed foreign private banks. DEMIRBANK (ROMANIA) S.A. is well experienced in international banking and, more specifically, trade financing. Its strategy under this loan agreement is to support increasing trade in the Black Sea region.