The UK-based European Bank for Reconstruction and Development (EBRD) recently revealed its expected approval of an equity investment of up to EUR 15 million (USD 19.5 million) in The Foundations Fund 1.0, a Luxembourg-based corporate partnership fund, in an effort to foster capital equity investments in Romanian small and medium-sized enterprises (SMEs) that lead to multi-sector growth. The target of The Foundations Fund is to raise EUR 50 million (USD 65 million).
EBRD has invested EUR 612 billion (USD 800 million) in 26 projects in Romania in 2012 [2].
By Jennifer Young, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Project News, “Romanian Foundations Fund I,” http://www.ebrd.com/pages/project/psd/2013/44498.shtml
[2] European Bank for Reconstruction and Development Countries, “Romania,” http://www.ebrd.com/downloads/research/factsheets/romania.pdf
MicroCapital Story, December 20, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $13.2m to BT Leasing Transilvania of Romania,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-13-2m-to-bt-leasing-transilvania-of-romania/
MicroCapital Story, November 21, 2012, “MICROCAPITAL BRIEF: Part of $38b Commitment From European Investment Bank, World Bank, European Bank For Reconstruction and Development To Support SMEs,” https://www.microcapital.org/microcapital-brief-part-of-38b-commitment-from-european-investment-bank-world-bank-european-bank-for-reconstruction-and-development-to-support-smes/
MicroCapital Story, October 30, 2012, “MICROCAPITAL BRIEF: International Finance Corporation Aims to Boost Entrepreneurship in Romania with $10m Loan to Patria Credit,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-aims-to-boost-entrepreneurship-in-romania-with-10m-loan-to-patria-credit/
MicroCapital Story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-32m-to-garanti-bank-romania-for-small-and-medium-sized-enterprises/
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