Raiffeisen Bank Romania and the Investment and Development Bank (BID) have signed a guarantee agreement dedicated to financing SMEs in Romania, under which the bank will be able to finance companies with a turnover of up to 50 million euros with total amounts exceeding one billion lei, benefiting from a guarantee ceiling of 710 million lei.
"For more than 25 years, Raiffeisen Bank Romania has successfully supported entrepreneurs in Romania. Signing the partnership with BID represents a new strategic step in this direction, through which we facilitate entrepreneurs' access to financing and modern guarantee instruments. In this way, we actively contribute to economic development and to accelerating innovation in the business environment," Alexandra Arsene, SME Director at Raiffeisen Bank Romania, was quoted as saying in the press release.
According to a press relese from the bank, this mechanism covers up to 70% of the loan value, but may reach up to 80% for certain beneficiaries (companies majority-owned by women; start-ups; companies operating in the field of innovation).
The guarantee period extends for up to 10 years and offers increased flexibility for long-term investments.
"The SME portfolio guarantee is an instrument through which we directly translate BID's strategic objectives into real support for Romanian entrepreneurs. Through this product, we facilitate access to financing where the market encounters blockages and stimulate investments in digitalisation, innovation and the transition towards a green economy. All this is aimed at developing a competitive and sustainable business environment in Romania," said Teodora Petre, Executive Director, Commercial Area, at the Investment and Development Bank.
Entrepreneurs may apply for loans for: digitalisation, modernisation and energy efficiency; investments in equipment, expansion of production capacities, commercial or storage spaces; and working capital, including taxes, salaries, inventories, utilities and other current needs.
According to the same source, activities in the fields of real estate development, grain trading, agricultural inputs and other activities excluded under the BID framework are not eligible for financing.
The guarantee may cover a significant part of the loan, allowing companies easier access to funds without tying up their own resources or personal assets.
The agreement is part of the portfolio guarantee programme dedicated to SMEs and aims to increase access to financing for small entrepreneurs and, implicitly, to support the Romanian entrepreneurial environment. The programme is valid until 31 December 2027, the deadline for granting financing.
Raiffeisen Bank operates on the Romanian banking market, serving approximately 2.3 million individual and corporate clients.
The Investment and Development Bank is the only development bank fully owned by the Romanian state, through the Ministry of Finance. The institution was established at the end of 2023.
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