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."

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The EBRD has signed investments worth a total of €200 million with Piraeus Group subsidiaries in Bulgaria, Romania and Albania

The EBRD has signed investments worth a total of  €200 million with Piraeus Group subsidiaries in Bulgaria, Romania and Albania as part of a package approved in July 2010. The aim is to provide medium and long-term debt financing through Piraeus Group subsidiaries in support of SMEs and corporate organisations for investment and working capital needs.

The EBRD investments are part of the joint pledge by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide over  €24.5 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.

The credit lines will contribute to the transition process by maintaining an essential flow of lending to enterprises at a time when the availability of credit, particularly to SMEs, has been constrained.

The Client

Three Piraeus Group subsidiaries in Bulgaria, Romania and Albania. Piraeus Bank Group is one of the most dynamic and active financial organisations in Greece, South-eastern Europe and Eastern Mediterranean, but also has presence in the financial centres of London and New York. At the end of June 2010, the Group had a network of 878 branches and employed 13,362 people.

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Alpha Bank Romania and Serbia - SME and Corporate Credit Line

The EBRD has signed loans worth a total of €200 million for Alpha Bank (ABG) subsidiaries in Romania and Serbia, as part of a package approved in July 2010. The aim is to provide medium and long-term debt financing through ABG’s subsidiaries for on-lending to private businesses operating in the three countries.
The EBRD investments are part of the Joint International Financial Institutions Action Plan set up by the EBRD, the World Bank Group and the European Investment Bank (EIB) to provide over €24 billion in support of the banking sectors in the region and to fund lending to businesses hit by the global crisis.

The credit lines will contribute to the transition process by maintaining an essential flow of lending to enterprises at a time when the availability of credit, particularly to SMEs and corporates has been constrained.

Alpha Bank group subsidiaries in two countries of EBRD’s region. 
Alpha Bank group is an international banking group with a strong and long-standing commitment to the region with a presence in many countries in Central and South-Eastern Europe, with a total of 6,001 employees servicing its clients through more than 564 branches in this region as oh end-June 2010.

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EBRD extends financing to Piraeus Bank Romania, Piraeus Bank Bulgaria, and Tirana Bank in support to the real economies in the region

The EBRD has signed today three credit lines worth a total of €200 million with subsidiaries of Piraeus Bank in Romania, Bulgaria, and Albania for on-lending to businesses in their respective countries.  Under the project Piraeus Bank Romania will receive €90 million, Piraeus Bank Bulgaria will receive €70 million, and Tirana Bank will get €40 million of new funding from the EBRD.
The EBRD financing will provide the three banks with medium term senior funding to support their funding base, diversify and extend the maturity of their liabilities and enhance their lending to the economy as well as strengthen further their presence in these markets.

”The EBRD is pleased to expand its cooperation with the subsidiaries of the Piraeus group in the region, as support for the banks and the real economy is particularly important given the relative fragility of the economic recovery in much of south-eastern Europe. The project will help to ensure a continued flow of credit to private companies operating in Romania, Bulgaria, and Albania at a time when businesses are still facing difficulties in obtaining funding for their operation and development’, said Nick Tesseyman, EBRD Managing Director for Financial Institutions.

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€230 million to support lending to businesses in South-Eastern Europe

The EBRD has signed three credit lines worth a total of €230 million for subsidiaries of Eurobank EFG Group in Romania, Bulgaria and Serbia, for on-lending to private businesses operating in the three countries. The EBRD credit lines will provide Bancpost S. A. (Romania), Eurobank EFG Bulgaria 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, Bancpost S.A. will receive €95 million, Eurobank EFG Bulgaria AD (Postbank) €75 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, EBRD Managing Director for Financial Institutions.
“A year ago, Eurobank EFG Group has contributed together with the international financial institutions 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 get over the crisis” said Mr. Giorgio Pradelli, General Manager of Eurobank EFG Group and Head of International activities.

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