EximBank activities for State’s account soared 40%
Bucharest, May 2, 2011 –EximBank activities for State’s account climbed almost 40% in 2010 as against end of 2009, with total commitments (financing, guarantee and insurance) roughly four times larger than in 2008.
„Considering the economic and financial crisis still prevailing in 2010,EximBank made relentless efforts to uphold commercial companies which resulted in successful deeds. Throughout the last year the bank showcased significant progress for all the range of products supplied for State’s account, with a most comspicuous surge against December 2009, notably 162% in the insurance field. The year 2010 pointed to a substantial raise of exposures associated with default payment risk for non-marketable risks with major weight accounting for exposures on Russian Federation”, commented Ionuţ Costea, president of EximBank.
He added that during the same period financing grew almost 30%, while guarantees went up 33%.
„The guarantees showed the highest dynamics reaching RON 1.03 billion, four times more than in 2008. Relying on such guarantees for State’s account, the companies were able to access the loans required for the expansion of their business both for venture capital and for major investment projects.”, explained EximBank’s official. He also mentioned that such results were made possible by a simplified procedure of extending sovereign guarantees of up to Euro 1.5 million, a management decision which curtailed the responding time to 10 days from one month as it used to be.
From the total sovereign guarantees issued in 2010, 64% were granted to large companies of the manufacturing, extractive and building industries, while about 20% went to SME-s.
All over last year the total exposure of EximBank (total amount of financing, guarantee and insurance granted for State’s account and for Bank’s account) increased by almost 20% against end of previous year and doubled from end of 2008. Assets of EximBank underwent a positive evolution with a surge to RON 3.5 billion, i.e. nearly 5% more than at the end of last year.
„This year, our business strategy focuses on the development and raise of competitiveness pertaining to those SME-s and commercial companies involved in EU funded projects. To reach such targets we have to change the outlook on the bank among businessmen. For most of entrepreneurs,
EximBank is mainly the exporters’ bank which is only half the truth presently. Market share and pinpointing demands of prospective customers have entailed a reshuffle of bank’s scope, which broadened the range of offer recipients. Therefore, EximBank is in a position to support any type of commercial company, either SME or large company, dealing with exports or not, by means of its financial instruments”, said Ionuţ Costea.
EximBank is a specialized institution whose threefold product portfolio focused on financing, guarantee and insurance.
The financing package supplied by the bank can include not only standard loans for current business or investments but also special products in the range of State Aid, such as: credits at subsidized interest rate and partial interest offset which allows for recovery of up to 50% of the rate paid for RON investment credits engaged with other banks.
Sovereign guaranteesprovided byEximBank are meant to support those companies in need of loans but short of enough collaterals. The guarantees issued by EximBank take over a significant part of the credit risk thereby paving the way to financing.
For the insurance part, EximBank covers commercial and political risks associated with international transactions or with the implementation of investment projects run by Romanian companies abroad.
Companies expressing an interest in EximBank products may apply directly to the territorial units of the bank, located in Bucharest, Bacau, Brasov, Constanta, Cluj, Craiova, Timisoara, Buzau, Oradea, Deva, Iasi and Sibiu. Likewise further information may be reached at the website www.eximbank.ro or the address firstname.lastname@example.org particular products and documents.