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EBRD invests US$ 6.2 million in Romania's Banca Transilvania
The European Bank for Reconstruction and Development has invested US$ 6.2 million (€7 million) for a 15 per cent stake in Banca Transilvania, which is listed on the Bucharest Stock Exchange. The investment aims to strengthen the bank's capital base and permit it to expand its activities and loan portfolio. Because Banca Transilvania is focused on lending to small and medium-size enterprises (SMEs), the EBRD's investment will support the development of the private sector in Romania.
"The EBRD's investment will support the development of private sector banks focusing on small businesses. We hope to contribute to the growth of Banca Transilvania throughout Romania," said Kurt Geiger, Business Group Director for Financial Institutions at the EBRD.
"The EBRD's participation as a shareholder confirms its confidence in Banca Transilvania and will help us to strengthen our service to customers in the development of their business," said Iosif Pop, President of Banca Transilvania.
Banca Transilvania was established in 1993, with branches in Cluj-Napoca and Oradea in 1994. During the last eight years it has experienced impressive growth, reaching €24.5 million in equity and €128.8 million in assets at the end of 2000.
Banca Transilvania was the first bank in Romania to be listed on the Bucharest Stock Exchange and currently has more than 3,700 shareholders. It employs more than 1,100 staff and works through a nationwide network including 32 branches and five foreign exchange offices. It is a bank oriented toward both corporate and retail customers, focusing on financing the SME sector.
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