EBRD grants EUR 335 million financing to Alpha Bank, Piraeus Bank and Bancpost

The European Bank for Reconstruction and Development EBRD has granted a combined EUR 335 million financing to three local banks: Piraeus Bank, Alpha Bank and Bancpost. The financing was granted in conjunction with similar efforts for sister banks across the region, and in support of the real economies in these countries.

The subsidiaries of Piraeus Bank in Romania, Bulgaria and Albania received a total of EUR 200 million credit lines for on-lending in business in their respective countries. Under the project Piraeus Bank Romania will receive EUR 90 million, Piraeus Bank Bulgaria will receive EUR 70 million, and Tirana Bank will get EUR 40 million of new funding from the EBRD. 

The EBRD has also signed two credit lines worth a total of EUR 200 million for subsidiaries of Alpha Bank Group, Alpha Bank Romania and Alpha Bank Serbia, helping to increase the availability of financing for private businesses in the two countries.

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Alpha Bank Romania will receive EUR 150 million and Alpha Bank Serbia  EUR 50 million of new funding from the EBRD.

The EBRD will also finance with EUR 230 million Bancpost in Romania, Eurobank EFG Bulgaria, and Eurobank EFG in Serbia. Bancpost will receive EUR 95 million, Eurobank EFG Bulgaria AD (Postbank) will receive EUR 75 million, while Eurobank EFG Beograd will get EUR 60 million.

The EBRD financing will provide the banks with medium term senior funding to support their funding base diversify and extend the maturity of their liabilities and enhance their lending to the economy as well as strengthen further their presence in these markets.

These package of loans, to be provided in two equal tranches, is part of the Joint International Financial Institutions Action Plan and follows other similar facilities offered to the subsidiaries of the major Western European strategic banking groups engaged in the region over the past 18 months. 

Under the Joint IFI Action Plan, unveiled in February 2009, the EBRD, the World Bank Group and the European Investment Bank (EIB) pledged to provide EUR 24.5 billion over two years to support the economies of eastern Europe via the banking sectors.