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Bucharest
January 18, 2022
BUSINESS

EximBank keeps granting interest rate offset during 2012 – 2014

Ionut Costea, President EximBank

“EximBank is a specialized bank granting assistance to the Romanian business environment by means of particular products in the range of financing, guarantees and insurance. It was largely known as a financial institutions supporting the exporters but during last years, we extended our activity and now we can offer financial business solutions to all entrepreneurs regardless of their lines of bussines or size. In order to be able to permanently adjust our products portfolio to the market needs, our representatives are participating in various business meetings, conferences and events aiming at facilitating the dialogue between Romanian companies, other financial institutions and our bank.

Also, EximBank has initiated a series a series of workshops with representatives of the territorial banking units intending to find the most appropriate co-operation ways with the commercial banks for the benefit of the common clients. Since the onset of such project in spring, several meetings of the kind have been organized all over the country, with more than 350 participants from the sales network of the commercial banks. The project has been initiated in order to give an impetus to the co-operation with commercial banks and the positive reply of the latter has materialized in an obvious increment of the amount of guarantees extended by EximBank. In the first semester of the year the exposure of EximBank related to guarantees rose 40% as against the same period last year. In terms of financing products I would like to mention that EximBank will continue to grant interest rate offset in the lapse of time ahead, 2012  – 2014 subsequent to the extension of the State aid scheme validity, which will enable the economic operators to curtail interest rate costs incurred by investment loans.

How is this financing product working?

By means of the product Interest rate partial offset granted by EximBank, commercial companies can recover up to 50% of the interest rate paid for investment credits engaged in LEI with any commercial bank. The validity of such State aid scheme was due to cease by the end of the year but it was prolonged for the next two years.

Since 2009 to mid-year 2011, almost euro 10 million were refunded in the accounts of the companies that have applied to us for this product. The interest rate offset is an enhancing tool towards the loans in national currency, and also a source of liquidities for those companies which deal with investment projects qualifying for financing.

What type of companies can apply for this product?

Any economic operator can apply for an interest rate offset since last year the range of recipients was expanded from SMEs to all companies, irrespective of their size. The interest rate offset accounts for a de minimis aid (a State Aid allowed within UE which can be granted to a limit without prior notification and approval from the Competition Council or the EC). Considering the ceiling featured by a de minimis scheme, the amount to be assigned to a company can be as high as 200,000 Euro for three fiscal years.

We are strongly encouraging the Romanian companies to access our products and to benefit from the consultancy that our experts offer in order to tailor the best solution for every specific business situation, in order to increase their economic performance.

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