EBRD extends 350 mln euro credit to SE Europe banks

The European Bank for Reconstruction and Development signed three credit lines, totalling 350 million euros ($470 million), with subsidiaries of the National Bank of Greece in Bulgaria, Romania and Serbia to support lending. United Bulgarian Bank will receive 150 million euros, Banca Romaneasca 100 million euros, and Vojvodjanska bank 100 million euros of new funding from the EBRD, it said in a statement on Monday.

The London-based lender said in October spillover risks from Greece's sovereign debt crisis had been contained thus far but warned that it still had the potential to disrupt economic activity in the region if the situation deteriorated. It expected southeastern Europe to suffer an economic contraction of 0.6 percent this year before growing 1.6 percent in 2011 as while exports are growing rapidly, domestic demand in most countries remains sluggish and many are struggling on the fiscal front.

"Support for these banks and the real economy in Bulgaria, Romania and Serbia is important to boost economic recovery," Nick Tesseyman, EBRD managing director for financial institutions, said in the statement. "The project will help to ensure a continued flow of credit to private companies operating in these countries, which is essential to foster development in difficult macroeconomic conditions."

News source: Reuters link: article

New EBRD funds for energy efficiency and renewable energy projects in Bosnia and Herzegovina

The EBRD is continuing to promote energy efficiency and renewable energy projects in Bosnia-Herzegovina with a €5 million credit line to UniCredit Bank, for on-lending to local private companies undertaking sustainable energy investments. The financing to UniCredit Bank part of UniCredit, is extended under the EU/EBRD Western Balkans Sustainable Energy Credit Line Facility. The proceeds of the loan will be used to support companies investing in industrial energy efficiency, small renewable energy production and energy efficiency in commercial buildings with loans worth up to €2 million.

The project is supported by EU grant financing that will be used as investment incentives to encourage local companies to implement energy efficiency and renewable energy projects. Technical assistance to help companies prepare eligible projects will be funded by the EBRD Western Balkans Multi-donor Fund. This is the second transaction under the EU/EBRD Western Balkans Sustainable Energy Credit Line in Bosnia and Herzegovina. 

“Improving energy efficiency is one of the EBRD’s key priorities. The project will encourage local businesses to invest in rationalisation of energy use, thus improving their efficiency and overall competitiveness”, said Giulio Moreno, Head of EBRD Office in Bosnia and Herzegovina. “I am very pleased that UniCredit Bank continues its long-standing and successful cooperation with the EBRD and I am confident that our joint efforts will provide stronger support and give fresh impetus to the local economy. International support, particularly support from banks as long-term investors, is of great importance for the region“, said Berislav Kutle, CEO, UniCredit Bank.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.2 billion in more than 80 projects in various sectors of the economy. EU/EBRD Western Balkans Sustainable Energy Credit Line Facility is a €60 million joint framework to support banks involved in lending for energy efficiency and renewable energy projects in Serbia, Bosnia and Herzegovina, FYR Macedonia, and Montenegro.

News source: EBRD link: article