Under the agreement, CEC Bank is authorised to extend loans up to a ceiling of RON 740 million (€149.2 million), utilising a guarantee ceiling provided by BID of RON 520 million (€104.9 million). This mechanism allows the bank to offer loans with guarantees of up to 70% (and up to 80% for specific categories) within a capped portfolio.

The goal of this new mechanism is to mitigate the funding deficit faced by Romanian SMEs by simplifying access to credit and lowering costs. Crucially, the portfolio guarantee system operates with a systemic effect, covering a portion of the total risk across the bank's loan portfolio, enabling faster financing with lower capital consumption compared to traditional, loan-by-loan analysis.

Bogdan Neacșu, President of CEC Bank, said: "The portfolio guarantee mechanism represents a modern and efficient solution that allows banks to sustainably assume greater risks, thereby supporting private initiative and innovative projects."

Furthermore, the collaboration will help CEC Bank align with the requirements of green financing by crediting sustainable investments and projects that contribute to climate neutrality and energy efficiency.