The funds are to be used for a series of projects, such as financing small and medium-sized enterprises (SMEs) and municipalities, and leasing activities, according to EIB data.
The investment projects to be financed are in the SME category, in energy, environmental protection, infrastructure (including health, education, social homes), and economy development based on knowledge, industry, services, and tourism.
EIB estimates the project’s total costs at some €60 mln. The European Bank has granted similar loans to Banca Comerciala Romana, Romania’s largest lender in terms of assets, and to Raiffeisen Bank Romania, which ranks third in the local banking system.
The European Investment Bank was created as the long-term lending bank of the European Union (EU). Its shareholders are 27 EU members led by a Board of Governors, made up of the 27 Finance Ministers.
EIB’s role is to take over the long-term financing of various projects with positive economic and financial viability.
Most of the necessary resources for granting loans come from bonds placed on equities markets.
Between 1990-2005, EIB granted loans worth $4.3 billion (€3.01 bln) in favor of Romania for projects related to its joining the EU.
BRD posted €194 mln in net profit in 2006, a 19 percent year-on-year increase, due to the doubling in the number of loans for individuals.
The bank’s total assets amounted to €9.83 bln in the first half of 2007, a 38.14 percent annual rise. The lender is controlled by the French Societe Generale financial group, which has a 58.32 percent share package, the five Romanian financial investment companies (SIF) which together have a 25.26 percent participation, and the European Bank for Reconstruction and Development (EBRD), with a 4.99 percent equity interest.
