OREANDA-NEWS. May 30, 2007. Loans to help small and medium-sized enterprises to grow.

Raiffeisen International subsidiaries in Bulgaria (Raiffeisenbank (Bulgaria) EAD) and Croatia (Raiffeisenbank Austria dd, Croatia) will each receive loans amounting to 10 million euros from the European Bank for Reconstruction and Development (EBRD). The funds will be made available under the EU/EBRD SME Finance Facility to farmers and entrepreneurs based in rural areas in Bulgaria, and to small and medium-sized enterprises (SMEs) in general in Croatia, giving them more access to finance to expand their businesses. Both loans will be complemented by grant support from the European Commission.

Kurt Geiger, EBRD Business Group Director for Financial Institutions said, "Raiffeisen International is an important partner for the EBRD in reaching out to private-sector business. Banking goups like Raiffeisen International are vehicles which enable us collectively to reach into the heart of the entrepreneurial sector, helping to create jobs, especially in rural areas, and boost economic growth."

Herbert Stepic, CEO of Raiffeisen International, added, "Our long-time partnership with the EBRD has resulted in numerous transactions and co-operation agreements that have all proved beneficial for the ultimate target groups, in most cases SMEs. We have thus both contributed a good share to promote private initiative and the growth of the economies all across Central and Eastern Europe."

The EU/EBRD SME Finance Facility, a joint programme of the European Commission and the EBRD, supports the development and growth of entrepreneurs by facilitating their access to finance. Under this regional programme covering 11 countries, the EBRD has committed 1,091.5 million euros to date, supported by 145.8 million euros in grant financing and technical assistance from the EC since the launch of the Facility in 1999.