The European Bank for Reconstruction and Development (EBRD) has signed three credit lines worth a total of €230 million for subsidiaries of Eurobank EFG Group in Bulgaria, Romania, and Serbia for on-lending to private businesses operating in the three countries.
The EBRD credit lines will provide Postbank, Bancpost S. A. Romania, and Eurobank EFG Serbia with longer term senior financing to support their funding base, diversify and extend the maturity of their liabilities and help them continue lending to the economies of these countries. Under the project, Postbank will receive €75 million, Bancpost S.A. - €95 million, and Eurobank EFG a.d. Beograd - €60 million of new funding from the EBRD.
"The EBRD is pleased to expand its cooperation with Eurobank EFG Group in order to enhance the availability of funding to businesses in Bulgaria, Romania and Serbia at a time when economic recovery remains relatively fragile," said Nick Tesseyman, Business Group Director of EBRD.
"A year ago, Eurobank EFG Group, together with the international financial institutions, has contributed to support the economies of the region through the "Vienna initiative". We are pleased to be collaborating with EBRD once again to reinforce business growth in these countries as their economies seem to be heading out of the crisis," said Mr. Giorgio Pradelli, General Manager of Eurobank EFG Group and Head of International activities.
This 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 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 €24.5 billion over two years to support the economies of Eastern Europe via the banking sectors.