Banca Transilvania (BT) and the Bank for Investment and Development (BID) have concluded an agreement to support the development of investment projects for infrastructure and local communities, carried out by public authorities and their subordinate companies.
According to a BT press release, the partnership expands local and regional financing capacity, and at the same time strengthens the guarantee mechanism by reducing risks and faster access to sustainable financing.
The value of the BID Guarantee is between 5 and 150 million lei, the maximum guarantee period is 15 years and the maximum guarantee percentage is up to 80%.
"The agreement is part of the framework through which the Investment and Development Bank, together with commercial banks, supports projects in areas such as: digitalization, education, health, energy, public utilities, accessing European funds. For the next three years, the IDB provides a total guarantee ceiling of 2.1 billion lei," the press release reads.
Through this agreement, the Administrative-Territorial Units (ATUs), public companies that provide utility services, local or national interest companies with majority state capital, as well as public institutions will have easier access to financing, benefiting from the guarantee offered by the IDB.
"The IDB thus continues to expand the guarantee program, and Banca Transilvania joins as a new strategic partner in supporting the financing of important projects for communities," a press release from the IDB states.
This is the second such agreement signed by the IDB, after the one concluded with CEC Bank, and in the coming period, the IDB will conclude similar agreements with other financial institutions interested in supporting the development of the economic environment in Romania.
"Through this partnership, we continue to transform the IDB strategy into concrete actions, providing real support to local development. The IDB guarantee is an essential tool for accelerating public investments in areas vital to communities," said Teodora Petre, Executive Director of the Commercial Area of the Investment and Development Bank, quoted in the press release.
The Investment and Development Bank is the only development bank 100% owned by the Romanian state, through the Ministry of Finance, created at the end of 2023, through the National Recovery and Resilience Plan. The IDB's mission is to support economic and social development, economic competitiveness, innovation, sustainable economic growth and achieving climate neutrality in order to remedy dysfunctions in the financial market.
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