The loan benefits from substantial technical assistance grant package from EU, Phare support, in amount of EUR 3 million.
“The credit line with Raiffeisen Bank was extended under the Rural Credit Window within the SME Finance Facility of the European Community. For this reason the lending programme for farmers and rural businesses jointly conceived in the framework of the agreement being signed today is designed to contribute to the strengthening and deepening of the credit market in rural zones of Romania” said Helmut Horn, Vice-president KfW, in charge with Global loans Germany and Europe.
“The agreement signed with the KfW will certainly lead to the increase in the volume of loans granted by Raiffeisen Bank to the SME sector. Furthermore, we plan to establish 100 distribution points in rural areas. In this way we will support the development of SMEs in rural areas that could not have access or accessed the financing sources with difficulty”, R`zvan Munteanu, Vice-president in charge with the Retail Division, stated.
The implementation of this agreement will extend the bank’s lending coverage to SMEs in rural areas, with more flexible lending conditions, which will stimulate growth of this sector in the Romanian economy. Raiffeisen Bank has more than 110,000 SME customers; the loans granted to this segment increased by more than 75% in the first six months of 2005 (as compared to the same period of the previous year), and the deposits grew by more than 80% in the same period.
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Raiffeisen Bank ranks third in Romania in terms of total assets, that exceeded EUR 2.57 billion at the end of June 2005. During the first six months of this year, Raiffeisen Bank obtained a net profit of EUR 17,4 million (according to IFRS), by four times higher than the one registered in the first six months of 2004. As of June 30th 2005, the bank had more than 1.7 million retail customers and more than 3,800 large and medium-sized corporations. The bank services its customers via 210 banking outlets and employs more than 4,500 people.
The Austrian Raiffeisen banking group holds 99,4 % of Raiffeisen Bank, through Raiffeisen International Bank-Holding AG (Raiffeisen International). Raiffeisen International is the steering unit for the subsidiaries of Raiffeisen Zentralbank Österreich AG (RZB) in Central and Eastern Europe (CEE). Raiffeisen International operates the leading banking network in CEE with Network Banks and leasing companies in 16 markets. More than 5.7 million customers are served through more than 970 business outlets.
KfW Bankengruppe gives impetus to economic, social and ecological development worldwide. With its long-term, low-interest loans KfW Bankengruppe promotes small and medium-sized enterprises and business start-ups, among others. In addition, the bank stimulates innovations and the equity capital market, advances environmental protection and encourages the expansion of municipal infrastructure. But KfW Bankengruppe does not limit its role to investment finance inside Germany as it is also engaged in export and project finance, the promotion of developing countries and advisory and other services. Through KfW Mittelstandsbank it promotes SMEs and business start-ups by granting classical promotional loans and innovative financings. KfW Mittelstandsbank was established following the merger of DtA (Deutsche Ausgleichsbank) and KfW in July 2003. The goal is to confront tomorrow’s problems today with promising, future-oriented solutions. To accomplish this KfW has developed model solutions to take up the challenges that long-term SME financing faces in the wake of ”Basel II”.
