The European Bank for Reconstruction and Development (EBRD) is increasing the availability of financing in Poland with a €100mn medium-term credit line to Bank Millennium for on-lending to small and medium enterprises (SMEs).
Although Poland has been less affected by the financial crisis compared with other countries in the region, access to finance by enterprises, in particular SMEs, has been severely reduced.
Responding to the new market conditions, Bank Millennium, majority-owned by Banco Comercial Português, aims to increase its business in the SME segment in Poland.
The EBRD funds will support Bank Millennium’s strategy to rebalance its loan portfolio by strengthening the corporate lending side of its business. In addition, the EBRD loan will support Bank Millennium’s efforts to raise medium-term funding.
The proceeds of the credit line will be used to provide working capital and capital investment for small and medium-sized businesses in Poland.
“The EBRD is pleased to support Bank Millennium both in its drive to develop a more balanced business model in the current difficult market conditions and in its efforts to prepare for growth in lending as economic recovery gathers strength. This transaction will provide a boost to the financial sector in Poland, to the benefit of local businesses currently facing limited access to credits”, says Jean Marc Peterschmitt, director, financial institutions department of the EBRD.
Since the beginning of 2009 the EBRD has committed over €2.24bn to support the financial sector in countries of its operations.
To date the EBRD has invested €3.8bn in Poland.
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