BSTDB Supports SME Development in Romania
Press Release | 15-Dec-2001
Following its strategic priority to support small and medium-sized business development in the Black Sea region, BSTDB will provide a US$ 10 million credit line to Banc Post, which was selected as a BSTDB financial intermediary in Romania.The Facility carries a tenor of 5 years with grace period of up to 1,5 years. Banc Post will use the Facility to finance the needs of small and medium sized enterprises (SME) in Romania.SME and sub-projects to be financed by the loan proceeds would have to comply with relevant eligibility criteria in terms of size, conditions and financial situation. It is a private sector financing and does not involve a sovereign guarantee.
The credit line would provide the critical support for the development of the small business in the private sector as well as banking industry in Romania offering the country the greater potential to accelerate economic growth and inspire investors’ confidence. The project is second BSTDB operation supporting SME sector in Romania. In 2000, BSTDB contributed US$ 4 million to a US$ 23 million Trans Balkan SME Equity Fund established together with IFC, USAID, SEAF, and a number of reputed international investors to support SME development in Romania, Bulgaria, Albania and some other Balkan countries.
Banc Post S.A. is one of the largest banks in Romania established in 1991. It operates as a universal, commercial and savings bank performing a wide range of services, and addresses all categories of customers via a nationwide 127-branch network. Banc Post is increasingly active in the SME sector, with more than 45% of its loan portfolio directed to small and medium sized companies.. Banc Post’s major shareholders include Greek bank EFG Eurobank Ergasias (19.25%), Portuguese bank Banco Portugues de Investimento (17%), and US General Electric Capital Corporation (8.75%).