The European Bank for Reconstruction and Development (EBRD) has loaned €20m (£17.6m) to BT Leasing, a Romanian lessor owned by Banca Transilvania.

The loan will be used to provide finance for Romanian micro and small and medium businesses (MSMEs), with a particular focus on areas outside of the capital Bucharest, and other large metropolitan areas.

Matteo Patrone, EBRD regional director for Romania and Bulgaria, said: “The EBRD is committed to supporting the development of the leasing market in Romania as part of its efforts to broaden access to finance for local companies.”

The deal represents the forth such loan from the EBRD to BT Leasing, the total of which now stands at €45m, having begun in 2011 with a deal to provide funding for SMEs in Moldova.

Ionut Morar, general manager of BT Leasing, said: “Through this new facility we intend to support the development of as many MSMEs in Romania as possible.

“In the first four months of 2017 BT Leasing financed assets for a total amount of €41m, a 27% increase compared with the same period in 2016.”

The EBRD said it has invested almost €7.5bn in close to 400 different projects in Romania.