EBRD Lends to Greek Bank Units in Bulgaria, Albania, Romania, SerbiaFinance | October 6, 2010, Wednesday // 14:41| views
The EBRD was created in 1991 to help former communist nations in their transition to market economies. Photo by EBRD
The European Bank for Reconstruction and Development (EBRD) said it has signed credit lines totalling EUR 630 M for the subsidiaries of three Greek banks operating in Bulgaria, Albania, Romania and Serbia.
The London-based bank said the credit lines will provide the banks with longer term senior financing to support their funding base, diversify and extend the maturity of their liabilities and help them continue lending to the economy.
The EBRD signed three credit lines worth a total of EUR 200 M with subsidiaries of Piraeus Bank in Romania, Bulgaria, and Albania for on-lending to businesses in their respective countries.
Under the project Piraeus Bank Romania will receive EUR 90 M, Piraeus Bank Bulgaria will receive EUR 70 M, and Tirana Bank will get EUR 40 M of new funding from the EBRD.
Eurobank subsidiaries - Bancpost S. A. (Romania), Eurobank EFG Bulgaria and Eurobank EFG (Serbia) - will have access to financing amounting to EUR 230 M. .
Under the project, Bancpost S.A. will receive EUR 95 M, Eurobank EFG Bulgaria AD (Postbank) EUR 75 M and Eurobank EFG a.d. Beograd EUR 60 M of new funding from the EBRD.
The EBRD will lend another EUR 200 M for subsidiaries of Alpha Bank Group, Alpha Bank Romania and Alpha Bank Serbia, helping to increase the availability of financing for private businesses in the two countries.
Alpha Bank Romania will receive EUR 150 M and Alpha Bank Serbia EUR 50 M of new funding from the EBRD.
The loans will be provided as part of the Joint International Financial Institutions Action Plan, an initiative that also includes the World Bank and the European Investment Bank, and which was launched in February 2009 with the aim of providing EUR 24.5 B over two years to help eastern Europe weather the global financial crisis.