6 February 2007 - Romanians in smaller urban centres are set to benefit from a Euro 100 million loan the EBRD is providing to retailer Kaufland Romania to support the company's expansion to the country's regions. The company has developed a tailor-made format which will offer consumers a wider variety of choice at competitive prices. At the same time local suppliers will benefit from the opportunity to sell their products to Kaufland.
The company, owned by Germany’s Schwarz Group, has established itself as one of the leading discount retailers in central and eastern Europe. Kaufland markets are also located in regional areas which are traditionally not served by large retailers. Products are chosen to suit local preferences and tastes. Consequently, a large proportion are acquired locally.
The loan to Kaufland Romania follows an extensive due diligence-process of the company’s practices, including compliance with labour law in several countries of operations. The process considered in particular questions raised by Germany’s trade union Ver.di and CEE Bankwatch to determine that the project is in full compliance with national and international law. This includes the applicable labour laws. The Bank will continue to draw on independent experts to monitor compliance with all obligations.
Gilles Mettetal, EBRD Director for Agribusiness, said the loan will expand the benefits of state-of-the-art retail operations to regions, customers and producers in Romania which are expected to benefit from increased competition. Bigger choice will ensure that customers will get value for money. The needs of modern retailing will be instrumental in bringing food safety and hygiene standards to EU standards. The EBRD has established a fruitful cooperation with Kaufland in Poland and is looking forward to repeating this success in Romania over the coming years, he added.
To-date in the agribusiness sector alone, the EBRD has committed €4.4 billion in 314 projects across central and Eastern Europe and the Commonwealth of Independent States.