Garanti Bank and IFC Sign EUR 55 M Loan Agreement to Support SMEs and Energy Eff...
Romania, January, 29 2019 -
Garanti Bank has signed a EUR 55 million loan agreement with the International Finance Corporation (IFC), member of World Bank Group, with the purpose of funding small and medium sized enterprises (SMEs) and sustainable energy efficiency projects, aiming to generate growth and resilience to climate change.
With this agreement, Garanti Bank becomes the first bank in Romania to receive a sustainable energy loan from IFC.
This is seventh agreement signed by Garanti Group Romania with IFC in the past seven years. Together with this line, since 2012, IFC has granted a total of EUR 157 million to Garanti, with the purpose of supporting local SMEs.
Enlarging financial intermediation is vital to sustain the flow of credit to SMEs, which are integral to Romania’s economy.
“We are proud to have visionary partners such as IFC together with whom we can deploy a solid strategy of supporting projects that bring added value to the community, not just to the economy. As innovators in the financial industry, we believe it is important to pave the way and support SMEs as well as companies that develop energy efficient projects or those that have adopted technologies based on renewable energy. We are, thereby, honored to sign this agreement with IFC and reinforce our long-term commitment to Romania. Garanti Bank has developed a solid partnership with IFC and we are proud to have an aligned mission of supporting sustainability, together with business development”, stated Ufuk Tandogan, CEO Garanti Bank.
“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, Regional Industry Senior Manager, IFC. “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”.
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.
IFC is a major international investor in the Romanian economy and an important supporter of private sector development globally.