MFP: Companies with less than 250 employees and turnover of less than 50 million euros can get funding from the European Investment Bank

Companies with less than 250 employees, a turnover of less than 50 million euros and earnings below 43 million euros can access the credit facility for SMEs of the European Investment Bank (BEI), with funding terms to be negotiated individually, the Ministry of Finance announced on Friday.

The BEI facility for SMEs consists of a credit line granted by a financial or banking institution which will lend the capital obtained from the European Bank for Investments to SMEs, in order to finance projects afferent to this sector, according to data from the Ministry of Public Finances (MFP).

"The funding limit for the EIB loan must not go above 50% of the medium and long term quota for lending for SMEs of the financial interim, and the latter must grant loans to SMEs with a value at least double that of the EIB loan. The funding conditions are negotiated on an individual basis with every financial institution, without having any standard price set", the Ministry of Public Finance press release states.

The EIB investment bank does not usually charge an arrangement or commitment fee, but in case there are no drawdowns for three months in a row since the date of the signing of the legal documentation, a 0,3%/year fee will be charged for the amount not drawn down. The EIB will limit the unsecured exposure of the granted funding to 5% of the total assets.

The final rate of the interest levied by BEI for this facility will be set according to the debtor"s solvency, the maturity of the credit facility, guarantees provided, as well as the exposure of the debtor to risk, data from the Ministry of Finance also shows.

The usual delay between filing a request for accessing a credit facility and actually obtaining access to it is some four months. Other information about the documents needed for accessing the EIB"s facilities for SMEs can be found on the EIBs official website.

In November 2008, Romania signed a loan agreement with the European Bank for Investments (BEI), for the co-financing of investment programs which will receive grants for infrastructure and environment, but also for the funding of other investments.

The EIB currently has a capitalization of 165 billion Euros.