The European Bank for Reconstruction and Development (EBRD) has loaned $43.9 million to Banca Transilvania (BT) to help finance household energy-saving projects.
BT is the first Romanian bank to use EBRD funds to finance loans for residential energy-efficiency projects, according to a BT press release. Other banks are expected to follow suit.
The loan from EBRD is part of its Green Economy Financing Facility, which will eventually finance up to $109.8 million worth of green projects in Romania.
Grants may also be available by the Global Environment Facility and the EBRD Shareholder Special Fund for technical advice and support to both banks and those borrowing from them for energy efficiency projects.
“Most of Romania’s residential buildings were constructed between 1960 and 1990 with low thermal insulation," Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, said in the release. "While energy efficiency improvements are urgently needed, access to finance for such investments remains limited. We are happy to offer a new financing product that addresses this issue and very pleased to sign the first project with Banca Transilvania."