Romanian Bank Invests in the Medical Leasing Market

In December 2006, Banca Transilvania, working with the Banking on Health Project to expand financing to family doctors and other providers and distributors of family planning and reproductive health services, invested RON 1,319,100 (USD $515,000) to purchase 39 percent of the share capital of Medicredit Leasing IFN S.A. (“Medicredit”). Medicredit is a specialized firm providing operational and financial leasing for the purchase of medical equipment, with a focus on the small-scale health sector.

This investment strengthens Banca Transilvania’s presence in the health sector and in leasing. The investment has the effect of increasing the value of the share capital of Medicredit, thereby expanding its ability to provide financing to the medical sector.

As USAID phases out funding in Romania, Banking on Health, an Abt Associates-led project funded by USAID, is working to sustain the long-term gains that have been made in women’s health. Family doctors are credited as being a key factor in the Romania success story. Banking on Health is working in Romania with five banks and microfinance institutions to increase financing for family doctors and other providers of reproductive health and family planning services. Banking on Health’s work with financial institutions includes providing market information and technical assistance in marketing and health sector product development.

Banking on Health is also working with family doctors to improve the viability of their practices and designed a three-day financial management course that has been piloted in each of the eight development regions of the country. The courses were attended by 140 family doctors that work in a capitated system and are keen to improve their abilities to effectively manage their practices and plan for investment.