The European Bank for Reconstruction and Development (EBRD) will extend a total 350 million euro in credit lines to National Bank of Greece (NBG), of which 150 million euro will be allocated to United Bulgarian Bank.

Under the agreement, the remaining funds will be provided to NBG's Romanian and Serbian units, Banca Romaneasca and Vojvodjanska bank, which will obtain 100 million euro each.

The finance is aimed at reinforcing the banks' structure, diversify and extend the maturity of their liabilities and prop up their lending to the economy.

"The EBRD is very pleased to expand its cooperation with the subsidiaries of the National Bank of Greece in the region, as support for these banks and the real economy in Bulgaria, Romania and Serbia is important to boost economic recovery. The project will help to ensure a continued flow of credit to private companies operating in these countries which is essential to foster development in difficult macro-economic conditions," Nick Tesseyman, EBRD managing director for financial institutions said.

The medium-term credit lines, to provided in two equal tranches, are part of a joint international financial institutions action plan, agreed in February 2009.

Under the two-year scheme, the EBRD, the World Bank and the European Investment Bank (EIB) will allocate a total 24.5 billion euro to back Eastern European states through the banking sector.

Earlier in 2010, the EBRD extended credit lines to the regional subsidiaries of Greek Piraeus Bank and Eurobank EFG Group, which amounted to a combined EUR 145 million euro.

In October, EBRD said that the region has managed to curb the spillover of debt crisis risk and pledged its eagerness to help the countries if economic conditions deteriorate.

Source: Dnevnik.bg