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Add to Preferred SourcesIFC, a member of the World Bank Group, is providing a €55 million loan to Garanti Bank Romania to help finance small and medium-sized companies (SMEs) and their sustainable energy finance projects to generate growth and resilience to climate change.
This is the seventh agreement signed by Garanti Group Romania with IFC during the past seven years. Together with this line, since 2012, IFC has granted a total of €157 million to Garanti.
The new loan will allow Garanti to extend its reach to smaller companies. The level of financial intermediation in Romania is one of the lowest in the EU and yet has to fully recover from the global financial crisis. Enlarging financial intermediation is vital to sustain the flow of credit to SMEs, which are integral to Romania’s economy.
Romania is highly exposed to floods and earthquakes, with past natural disasters resulting in billions of dollars in direct damage. Institutional reforms and recent investments have improved emergency response capacity, but the potential impact of disasters on infrastructure and the most vulnerable populations remains extremely high. As the climate warms, the severity, intensity, and frequency of storms, floods, droughts, wildfires, and extreme temperatures are increasing. Thus, there is an urgent need to build resilience against the impact of increasingly severe climate events.
“Strengthening Romania’s resilience to climate change through private sector projects and increased energy efficiency is essential for uninterrupted growth of the economy,” said Vittorio Di Bello, IFC Regional Industry Senior Manager. “Our partnership with Garanti Group Romania also ensures that smaller companies and entrepreneurs will continue to have access to the funds they need to grow and create jobs.”
IFC is a major international investor in the Romanian economy and an important supporter of private sector development globally.
Original source: IFC
Published on 29 January 2019