The European Fund for Southeast Europe (EFSE) has extended a EUR 20 million loan to BT Leasing Transilvania to support micro, small and medium-sized enterprises (SMEs).

A subsidiary of the Banca Transilvania Financial Group, BT Leasing provides dedicated financing solutions that support local entrepreneurs’ businesses, making it an important partner for the European Fund for Southeast Europe (EFSE) in promoting economic prosperity by strengthening the capacity of local financial institutions to offer competitive funding to SMEs. The loan is intended to help businesses succeed, encourage investment and support Romania’s economic development.

Christoph Tiskens, Chair of the EFSE Board of Directors, said: “Our partnership with BT Leasing is strong. Romania’s growth outlook is very promising, and we need lending institutions like BT Leasing to help deliver financial inclusion. BT Leasing has the expertise, capacity and infrastructure to reach businesses across the country in a sustainable way.”

Ionut Morar, General Manager of BT Leasing, said: “This is the second loan from the European Fund for Southeast Europe, the first having been implemented during 2007–2012. With this new facility we will be able to support Romanian entrepreneurs, especially micro businesses and SMEs, given that finance leasing is the most straightforward way for such companies to fund their investments.”

About the European Fund for Southeast Europe

The European Fund for Southeast Europe (EFSE) was set up by KfW Development Bank (KfW) with the financial backing of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. Its purpose is to foster economic growth and prosperity in countries such as Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, the former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.

Because access to finance is a key factor in developing the micro, small and medium entrepreneurial segments, EFSE focuses on helping local financial sectors improve their ability to provide appropriate and sustainable financing. EFSE provides long-term funding for micro and small enterprises—as well as for private households, in the form of home improvement loans—channelled to these clients through local partners, in particular lending institutions. EFSE’s investment activities are supported by the EFSE Development Facility, which offers partner lending institutions technical assistance, advisory services and training to build operational capacity and professional management.

Established by KfW Development Bank (KfW) on 15 December 2005 through four multi-donor programmes coordinated by it, EFSE is the first public–private partnership of its kind and the first privately managed development finance fund to mobilise private financing for SMEs in its target regions.

Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, the Small and Medium Business Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Austrian Development Bank (Oesterreichische Entwicklungsbank, OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW as lead investor, the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), as well as Deutsche Bank.