EBRD Lends EUR25M To Raiffesen Bank Romania

EBRD will also provide subordinated loan of EUR100 million equivalent to Raiffeisen Bank Aval in Ukraine, and EUR25 million equivalent to Raiffeisenbank in Russia. The loans to the Ukrainian and Russian subsidiaries will be supplied in dollars.

"The EBRD's Board of Directors approved a EUR150 million financing package for three subsidiaries of Raiffeisen International, complementing the group's own continued provision of capital and funding of its banks in eastern Europe," EBRD said in a statement.

EBRD's subordinated loans aim to address the impact of the financial crisis on the three countries' economies.

"Through this project, the EBRD is supporting an important international group with a strong commitment to the region," according to the release.

The aim of the subordinated credits is to strengthen the capitalization of Raiffeisen International's network banks in order to support their corporate lending.

"Maintaining the stability of the banking sector is a crucial component of the response to the international crisis," said EBRD President Thomas Mirow.

The financing package will strengthen Raiffeisen's subsidiaries, which is also for the benefit of the local economies, said Herbert Stepic, chief executive of Raiffeisen International.

The funding offered by the EBRD is part of a coordinated package for Raiffeisen International, alongside the European Investment Bank and the World Bank Group, amounting to a total of up to EUR1 billion.

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