The European Bank for Reconstruction and Development (EBRD) is considering a €10 million loan to Garanti Leasing Romania, a subsidiary of the Garanti BBVA Romania financial group.

The potential funding, falling under the EBRD’s Financial Intermediaries Framework (FIF) and its Green Economy Transition (GET) programme, aims to bolster micro, small, and medium-sized enterprises (MSMEs) and promote green investments in Romania.

This proposed funding, currently in its preliminary stages, is subject to a final review before potential approval.

The loan is positioned as a catalyst for the growth and development of Romania’s MSMEs, vital contributors to the nation’s economic fabric. By providing financial support to Garanti Leasing Romania, the EBRD aims to enhance the competitiveness and resilience of MSMEs, enabling the company to expand its portfolio and reach regional clients beyond the capital.

Under the EBRD’s GET programme, a minimum of 30% of the loan proceeds will be earmarked for green and low-carbon investments. This strategic allocation underscores the EBRD’s steadfast dedication to advancing environmentally sustainable practices and driving the transition towards a greener economy.

Garanti Leasing Romania, a mid-sized finance lease provider with a focus on SMEs, has a history of collaboration with the EBRD. As a part of the Garanti BBVA Romania financial group since 2010, the company is ultimately owned by the Spanish financial group Banco Bilbao Vizcaya Argentaria (BBVA).

The EBRD has previously extended loans to Garanti Leasing Romania, with the most recent loans approved in September 2021 and September 2022, totalling 10 million euros and 5 million euros, respectively.

As the EBRD continues its mission to foster economic development and promote sustainable practices, the potential loan to Garanti Leasing Romania exemplifies its commitment to supporting MSMEs and advancing the green economy transition.