A new agreement signed between ProCredit Bank and the European Investment Fund makes EUR 40 million available for low-interest loans to small and medium enterprises as part of the JEREMIE initiative
ProCredit Bank and the European Investment Fund have recently signed aEUR 20 million financing agreement as part of the JEREMIEinitiative, which will enable the bank to grant loans to small and medium enterprises up to a total value of EUR 40 million, with each institution contributing 50% of the value of the loans granted. Under this partnership, the bank will finance small and medium enterprises in Romania by granting loans with special conditions, including a partly subsidised interest rate, which is half the standard level and has lower collateral requirements.
The EUR 40 million total available funds will be granted in loans to the bank’s main target group – small and medium enterprises – which will be able to access investment and working capital loans with extended maturities of up to ten years for investments and three years for working capital.
The maximum loan amount is EUR 1 million and 50% is guaranteed through JEREMIE – the cost for this funding from the European Investment Fund is 0.
“ProCredit Bank is now entering its 12th year in the Romanian market. During this time, because the business sector is a priority for us, we have focused on providing efficient solutions to support the development of small and medium enterprises. We go beyond just offering financial services and we see ourselves in the role of a partner, providing advice and being actively involved in the relationship with our clients. We provide quality services and respond quickly to requests. Signing this new agreement with the European Investment Fund is recognition of our success and a vote of confidence in the bank, enabling us to continue building our successful partnerships with Romanian enterprises.”
Andreea Enache, Business Development Division Director
The financing provided benefits from support from an operational programme co-financed by the European Union Structural Funds pursuant to the “Joint European Resources for Micro to Medium Enterprises” initiative (JEREMIE). JEREMIE is implemented in Romania under the Sectoral Operational Programme “Increasing Economic Competiveness”, utilising funds provided by the European Regional Development Fund.
This is the third agreement between ProCredit Bank and the European Investment Fund, complementing the first two agreements signed in November 2013 as part of the EU “Competitiveness and Innovation Framework Programme”, through which the bank offers financing to small and medium enterprises with significant lower collateral requirements.