EBRD has granted a EUR 50 million credit line to BRD-Groupe Société Générale for on-lending to private small and medium-sized enterprises (SMEs) and corporates. The credit line is part of a broader financial arrangement provided by the EBRD to Société Générale’s subsidiaries in eastern Europe.
Majority-owned by Société Générale Group, BRD – Groupe Société Générale is the second largest bank in Romania, with a country-wide network of branches, servicing corporate, SMEs and retail customers. The EBRD has a five per cent shareholding in the bank since 1999.
Previously the EBRD provided the bank with over EUR 121 million in various financing packages.
The EBRD investment is part of a joint pledge by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide EUR 25 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.
The proceeds of the EBRD loan will be used to finance the investments and working capital needs of private companies operating in Romania with short, medium and longer term loans at a time when availability of funding to businesses remains constraint.
“The project will help to ensure a continued flow of credit to private companies operating in Romania at a time when businesses are still facing difficulties in obtaining funding for their development,” said Jean-Marc Peterschmitt, EBRD Director for Financial Institutions, EU and Ukraine.
“Our co-operation with the EBRD is a long standing one and very successful over many years and many banking products. The new credit line will be dedicated to both the SME sector and the larger private companies and will have a positive impact in re-launching the economic growth in Romania,” said Guy Poupet, Chairman and CEO of BRD – Groupe Société Générale.