The European Bank for Reconstruction and Development - EBRD has blocked a 100 mln euro loan it planned to grant to German group Schwarz so that it expand its Kaufland store chain in Romania. The EBRD justified the decision with a series of charges of abuse that German trade unions brought to the management of the company.

German trade union Verdi sent a letter to the EBRD in mid-January asking it to stop a loan for Schwarz as the group allegedly breached the labor legislation in Germany and other countries.

Previously, lobby group Bankwatch accused Kaufland of employing minors and of not obeying rules on work pauses for all employess.

The EBRD said it would check all complaints but said the examples provided by Verdi are just isolated cases.