September 15 (SeeNews) - The European Fund for Southeast Europe (EFSE) said on Thursday it has extended an 8 million euro ($8 million) subordinated loan facility to Romanian lender Libra Internet Bank to provide longer-term financing to micro, small and medium enterprises (MSMEs).
The facility will strengthen the bank’s capitalisation, contributing to an increased business resilience and financial intermediation in Romania, the EFSE said in a press release.
The bank will aim to allocate up to 40% of the proceeds to finance MSMEs engaged in sustainable agricultural activities and/or those majority-owned or led by women, young and rural entrepreneurs.
"Through this Basel III-compliant Tier 2 subordinated loan facility, Libra Internet Bank will be able to better absorb potential financial shocks while facilitating longer term funding for MSMEs. At the same time, this capital instrument will enable the bank to promote sustainable agricultural activities in Romania along with the MSME’s social commitments, contributing to more resilient and inclusive economic growth," EFSE board chairperson Klaus Mueller said.
An impact investment fund established in 2005, the EFSE aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of MSMEs as well as improved living conditions for private households. The fund was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development and the European Commission.
Libra Internet Bank, a member of the American investment group New Century Holdings, serves mostly customers with liberal professions, SMEs, as well as corporate and agribusiness clients.
($= 0.9994 euro)
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