Small and medium sized businesses (SMEs) in Romania will soon be able to invest in industrial energy efficiency and small scale renewable energy projects, thanks to a €10 million (£8.58m) loan.

London-based European Bank for Reconstruction and Development (EBRD) is providing the cash to Romania’s UniCredit Tiriac Bank for on-lending to SMEs in the country.

The loan is extended under the EBRD’s SME Sustainable Energy Financing Facility (RoSEFF) – a key instrument for promoting the rational use of energy as a means to cut bills and boost the competitiveness of SMEs.

Sylvia Gansser-Potts, EBRD Director for Financial Institutions, EU Banks said: “There is substantial potential in Romania to achieve energy savings and the EBRD long-term loan helps reduce the number of barriers that the private sector still faces in obtaining financing for energy efficiency projects.”

The EBRD has invested around €6.3 billion (£5.4bn) in projects across Romania to date.

Last month the EBRD also provided funding for Poland to upgrade it electricity distribution network.