Banca Comerciala Romana (BCR) becomes the first financial institution to sign a guarantee agreement with the Investment and Development Bank (IDB), within the portfolio guarantee program intended for financing small and medium-sized enterprises (SMEs), the bank announced on Friday.
The partnership aims to increase entrepreneurs' access to sustainable financing, through modern guarantee mechanisms that reduce risks and simplify collateral requirements.
Through this guarantee agreement, BCR will be able to grant loans of over one billion lei to SMEs, using the BID guarantee ceiling of 710 million RON. The BID guarantee can reach up to 10 million lei for each loan, covering up to 70% of the loan value, and for women-owned companies, start-ups and innovative firms, the guarantee percentage can reach up to 80%. The maximum guarantee period is 10 years, offering additional flexibility for long-term investments.
"For BCR, this partnership brings together the public and private sectors to transform the economy and develop entrepreneurial competitiveness. The Investment and Development Bank has a key role in this process and offers modern guarantee instruments that simplify access to capital and stimulate the creation of jobs with added value. The agreement between BCR and IDB supports the conversation with entrepreneurs about relevance, productivity, innovation and integration in international value chains, providing the necessary framework to transform these objectives into concrete investment projects," said Sergiu Manea, CEO of Banca Comerciala Româna, quoted in the press release.
The BID mechanism allows for customized financing solutions, tailored to each company's development stage. The guarantee can cover a significant part or even the entire collateral need, which means that companies can access financing more easily, without blocking their own resources or additional assets, facilitating access to financing and accelerating the approval process.
"By signing this guarantee agreement with BCR, we are transforming a public policy instrument into a concrete accelerator for financing the economy. The portfolio guarantee allows banks to expand lending to SMEs without assuming additional risks, which multiplies the effect of public capital and creates the premises for sustainable growth. For BID, this is just the first step in a broader program through which we want to bring capital where it produces value - in Romanian businesses that invest, innovate and create jobs", declared Dan Sandu, General Manager, Bank for Investment and Development.
Entrepreneurs can obtain loans for: investments in equipment, expansion of production capacities, commercial or storage spaces; modernization, digitalization and energy efficiency; working capital: inventories, taxes, salaries, utilities and other current needs.
According to the cited source, activities in the field of real estate development, grain trade, agricultural inputs and other activities excluded according to the IDB framework are not eligible.
"The partnership with the Investment and Development Bank continues BCR's mission to be the trusted partner of Romanian entrepreneurs, supporting them to build resilient businesses capable of long-term growth. We are adding to BCR's portfolio an instrument designed to bring financing closer to SMEs, which ensures flexibility and predictability thanks to the IDB guarantee", added Oana Bara, BCR Financing Programs Coordinator.
To access the BID guarantee, companies must be financially viable SMEs, with no debts to the state and no insolvency. Both the company and the financed project must respect the principles of sustainability (DNSH - Do No Significant Harm) and not have a negative impact on the environment. Also, beneficiaries must hold all environmental permits and certifications valid for the entire duration of the financing.
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 contributes to creating a sustainable and prosperous economic environment, prepared to face future challenges and changes.
BCR offers a complete range of financial products and services, through a network of 20 business centers and 18 mobile offices dedicated to companies and 298 retail units located in most cities in the country with over 10,000 inhabitants, of which 73% are units where cash operations are carried out only at equipment (cashless).
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