ProCredit Bank, a bank dedicated to the SME sector, has signed with the European Investment Fund (EIF) the guarantee agreement for the InvestEU programme with its two components, Sustainability and Competitiveness. The signed agreement represents a significant step in supporting ProCredit Bank’s efforts to provide advantageous financing to its clients, small and medium-sized enterprises in Romania, by offering guarantees of up to 70% of the financing amount.
With the support of the InvestEU Programme, funding will be provided to clients investing in sustainable infrastructure. This will support green investments in a wide range of projects covering multiple areas from renewable energy and energy efficiency to mobility and agriculture. They will particularly target businesses facing the rising costs of new technologies, perceived rising risks of climate change challenges and lack of availability of finance. The Competitiveness Component aims to facilitate access to finance for SMEs by providing capital support to businesses that have been affected by Covid-19.
“In the current challenging economic context, ProCredit Bank understands the development needs of Romanian entrepreneurs and supports them with appropriate financing solutions through the new collaboration with the EIF. Since 2013, ProCredit Bank has provided its clients with loans in guarantee partnership with the EIF totalling more than EUR 430 million. The sustainability component also plays a crucial role in supporting ProCredit’s strategy in the context of climate change and the decarbonisation urgency. It gives us the opportunity to contribute to mitigating the risks associated with climate change and to support the transition towards a sustainable economy. We are aware of our direct and indirect impact on the environment, as a consumer of resources, a financing institution and part of the business community” said Ștefan Manole, Director General.
The European Investment Fund supports sustainable investment, innovation and job creation in Europe through the InvestEU Programme. InvestEU helps mobilise private investment for the EU’s main policy priorities: developing sustainable infrastructure, expanding research, innovation and digitalisation companies and facilitating access to finance for SMEs.
The InvestEU Fund aims to mobilise over €372 billion for investment. To achieve this, €26.2 billion from the EU budget will be allocated as guarantees for investments financed with the support of implementing partners, including ProCredit Bank. The support provided under this programme will increase the capacity of the financial partners to bear the risks associated with financing eligible investments, while encouraging businesses to access the necessary loans for them.
Since its establishment, the EIF has provided financing worth EUR 3.1 billion through 119 contracts in Romania, while the EIB has provided expertise and financing for 179 investment projects worth EUR 17.73 billion in Romania since 1991.
ProCredit Bank România
ProCredit Bank Romania is part of the growth-oriented ProCredit group of commercial banks for small and medium-sized enterprises (SMEs). ProCredit Holding AG, based in Frankfurt am Main, Germany, is the parent company of the ProCredit Group.