Romania / Bank Lending To Small and Medium Sized Enterprises in Rural Areas: an Analysis of Supply and Demand
Report Series - N. 9 - January 2005
This publication is part of report series published under the FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme. The series presents sector reviews and studies undertaken in Central and Eastern Europe that cover development issues and innovative areas to increase investment in agriculture in the region.Romaniaâ€™s entry into the European Union in 2007 is expected to have a significant impact on the countryâ€™s small and medium sized enterprises (SMEs) operating in rural areas. EBRDâ€™s Financial Institutions team, together with its Agribusiness team, has developed a Facility to mix EU grant and EBRD loans in favour of rural SMEs in EU accession countries. EBRD called upon FAOâ€™s expertise to review lending opportunities in Romaniaâ€™s rural sector. This report was prepared to put forward recommendations to EBRD and local financial intermediaries, on which clients the EU/EBRD Facility should focus and on the types of financial products required to serve these new clients. The analysis can be used by other local or international financial institutions interested in rural credit.