The European Bank for Reconstruction and Development (EBRD) launched on Monday a new agreement for risk sharing for Romanian banks, and Raiffeisen Bank is one of the first banks that will benefit from this, according to a press release sent by the financial institution.
According to the signed agreement, EBRD will guarantee up to 65% of each loan granted by Raiffeisen Bank to eligible clients. EBRD commitment for Raiffeisen Bank could reach 100 million Euro. The agreement for sharing risk is designed to allow EBRD to guarantee Raiffeisen Bank exposure to local companies.
"We want to make sure that Romanian companies have access to a more diversified source of financing, based on their needs. Sharing risk is a new instrument from our product portfolio, thus continuing to offer financing that encourage investments and economic growth," said the regional director of EBRD for Romania and Bulgaria, Mark Davis.
"Through this framework of risk sharing signed with EBRD, we are diversifying our product range offered to the corporate segment and we are maintaining our commitment of supporting our clients' projects, at the same time contributing to the durable development of Romanian companies," said Silviu Toma, the executive director of Structured Financing and Projects of Raiffeisen Bank.
EBRD is an important institutional investor in Romania. Until now EBRD has invested 9.5 billion Euro in 485 projects in Romania, and 77% of EBRD investments are in the private sector.
Raiffeisen Bank has over 20 years of activity on the Romanian banking market and over 2.2 million clients, individuals and legal entities. The Bank has over 4,600 employees, 300 branch offices nationwide, 660 ATMs, 450 multipurpose vehicles and a network of over 25,600 POSs.