EIB and Garanti Bank support projects of SMEs, midcap companies and public sector entities in Romania

PRESS RELEASE

2014-061-EN

Luxembourg/Bucharest, 19 March 2014

EIB and Garanti Bank support projects of SMEs, midcap companies and public sector entities in Romania

The European Investment Bank (EIB) is lending up to EUR 50 million to Garanti Bank Romania, one of the most innovative and dynamic banks on the Romanian market, to finance projects promoted by small and medium-sized enterprises, midcap companies and public sector entities in Romania. The EIB loan is focused on fostering undertakings with positive impacts on the increase of employment in the country.

Mr Mihai Tanasescu, EIB Vice-President responsible for lending operations in Romania, commented: “The loan signed today is in line with the EIB’s lending priority of easing access to long-term financing for SMEs and midcap companies, which are the backbone of Romanian industry and have been hit hard by the fragmentation of the financial market. In cooperation with Garanti Bank, a new EIB partner financing institution, EIB funds will support investments undertaken mainly by SMEs on favourable terms and strengthen the competitiveness of this important economic sector”.

“Together with the EIB, Garanti Bank aims to offer primarily SMEs and midcaps the possibility to grow and develop their businesses through long-term lending solutions and partnerships. With the right financing and support, SMEs and midcap companies can contribute significantly to the country’s economic recovery”, said Ufuk Tandogan, Garanti Bank’s CEO.

The current loan is the first EIB operation with Garanti Bank S.A. Romania. This intermediated loan is being provided under the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs in order to mitigate the effects of the financial crisis.

Currently, Garanti Bank has more than 25,000 SME clients and over 3,000 corporate customers. In 2013, SME loans accounted for the biggest increase in the bank’s loans portfolio, with 17%. The funds provided through the EIB will support the growth of SMEs and midcaps by enhancing long-term competitiveness through the increased availability of long-term credit.

Background information

EIB

The European Investment Bank is the long-term lending institution of the European Union and is owned by the EU Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. To date the EIB enjoys active cooperation with 11 partner financing institutions in Romania and has provided credit lines totalling some EUR 1.3 billion.

Garanti Bank Romania

Garanti Bank Romania is part of the financial-banking group Garanti Romania, which brings together Garanti Leasing (the brand under which the company Motoractive IFN SA operates) and Garanti Consumer Loans (the brand under which Ralfi IFN operates). Garanti Bank is a universal bank held by Turkiye Garanti Bankasi AS (TGB), the most profitable and second largest private bank in Turkey by assets. Turkiye Garanti Bankasi is also found in the top 20 strongest banks in the world, according to the rankings compiled in May 2013 by Bloomberg, one of the most prestigious business and economic news agency worldwide.

Garanti Bank offers a range of quality products and services for all segments of business: retail, SME and corporate, and is one of the most dynamic and innovative banks in the local market. Present in Romania since 1998, the bank has developed a solid portfolio of clients and expanded its national presence through branches and alternative channels, building an extensive network of over 280 intelligent ATMs that can be used by anyone, not just bank customers, for transactions with or without credit cards.

For more information, go to www.garantibank.ro

Press contact

EIB :

Dušan Ondrejička, d.ondrejicka@eib.org , tel.: +352-4379-83334

Website: www.eib.org/press - Press Office: +352 4379 21000 - press@eib.org

Garanti Bank Romania :

Alexandra Ene / Account Coordinator Oxygen PR / alexandra@oxygenpr.ro / 0735.010.901