ING Bank signs two guarantee agreements with the Investment and Development Bank for SMEs and the financing of strategic investment projects in the public sector with a direct impact on local communities. The total value of financing dedicated to investments and working capital, which entrepreneurs can access through this mechanism, amounts to over 1 billion lei.
In the case of Local Administrative Units (LAUs) and affiliated entities, the guaranteed percentage is up to 80% of the investment value and covers areas such as infrastructure, public utilities, education, health, and renewable energy.
“We are delighted to join these first guarantee programs launched by the Investment and Development Bank, which have good prospects for contributing to boosting economic activity in the SME segment, as well as in the public sector. The Investment and Development Bank will play an important role in reviving the economy in the coming years, targeting those market segments that can bring Romania competitiveness and sustainable development. We congratulate the IDB team for their effort and professionalism in orchestrating these economic stimulus programs and look forward to our collaboration in the years to come”, says Mihaela Bîtu, CEO ING Bank Romania.
Through the guarantee ceiling for SMEs, entrepreneurs benefit from a guaranteed percentage of 70% of the value of the loans taken out. The maximum value of a loan requested is 14 million lei. Loans dedicated to working capital have a duration of up to 5 years, and those dedicated to investments have a duration of up to 10 years.
To benefit from the IDB guarantee, SMEs must meet the program’s eligibility criteria, ensure that the credit facility complies with the de minimis aid ceiling, be financially viable, have no debts to the state budget, and comply with DNSH principles so that the financed activity does not have a significant negative impact on the environment.
Individual guarantees for the public sector are aimed at the sustainable development of local and regional communities. The value of the guarantee ranges from 5 million to 150 million lei. In the case of working capital, credit is granted for a maximum of 10% of the financed value of the project through investment credit.
Through these partnerships, ING reaffirms its commitment to supporting sustainable development and actively contributing to economic growth in both the private and public sectors.
The Investment and Development Bank is the only development bank in the country, wholly owned by the Romanian state through the Ministry of Finance. It was created at the end of 2023 through the National Recovery and Resilience Plan. The Investment and Development Bank is a unique financial institution in Romania with a strong vision, an ambitious mission, and a clear set of strategic objectives.