The European Investment Fund (EIF) and Patria Credit have signed a
guarantee agreement aimed at supporting micro-businesses and selfemployed entrepreneurs in Romania |
Autor: Bancherul.ro
2012-04-11 16:10 |
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The European Investment Fund (EIF) and Patria Credit have signed a
guarantee agreement aimed at supporting micro-businesses and selfemployed entrepreneurs in Romania, said the bank in a statement.
This transaction was signed under the European Progress Microfinance
Facility (Progress Microfinance), funded by the European Commission
and managed by the European Investment Fund.
Thanks to this signature, Patria Credit will be able to provide micro-loans
(from EUR 10 000 to just below EUR 25 000) to micro-businesses and
start-ups across Romania, without requesting real collateral (except
personal guarantees) whilst offering reduced interest rates. Patria
Credit will now be able to provide loans to customers it otherwise
would not be able to finance.
It is expected that Patria Credit will provide about EUR 8 million of
microcredit over the next 2 years under this European Progress
Microfinance Facility guarantee. This is in addition to a loan Patria
Credit received under Progress Microfinance in May creating a
microloan pot of EUR 8 million.
Micro-enterprises wishing to apply for a micro-loan under Progress
Microfinance can contact Patria Credit’s branches in Romania
directly.
About the European Progress Microfinance Facility
The European Progress Microfinance Facility (Progress Microfinance)
provides guarantees and funded instruments to microfinance
intermediaries. The initiative is established with EUR 203 million of
funding from the European Commission and the European Investment
Bank. Progress Microfinance aims to increase access to finance for
micro-entrepreneurs, including the self-employed. It has a particular
focus on, but is not restricted to, groups with limited access to the
conventional credit market. Examples include female entrepreneurs,
young entrepreneurs, entrepreneurs belonging to a minority group,
entrepreneurs with a disability, sole traders etc. Loans less than EUR
25,000 are made available through selected intermediaries
participating in the facility. Progress Microfinance does not provide
financing or guarantees to micro-entrepreneurs or individuals directly.
About the EIF
EIF's central mission is to support Europe's small and medium-sized
businesses (SMEs) by helping them to access finance. EIF designs and
develops venture capital and guarantees instruments which
specifically target this market segment. In this role, EIF fosters EU
objectives in support of innovation, research and development,
entrepreneurship, growth, and employment. The EIF total net
commitments to private equity funds amounted to over EUR 5.4bn at
end 2010. With investments in over 300 funds, the EIF is a leading player
in European venture due to the scale and the scope of its investments,
especially in high-tech and early-stage segments. The EIF commitment
in guarantees totalled over EUR 14.7bn in close to 160 operations at
end 2010, positioning it as a major European SME guarantees actor
and a leading micro-finance guarantor.
About Patria Credit
Patria Credit is a non-bank financial institution, controlled by the
Romanian American Enterprise Fund and the Balkan Accession Fund,
which provides lending to micro and small entrepreneurs and to
agricultural producers. Patria Credit is operating since 1996 and is one
of the most important financial intermediaries for micro-enterprises and
low-income borrowers in Romania. At the end of 2011, the company
was serving a number of over 12,000 customers through a network of 15 branches in large cities and 27 branches located in rural areas. The
total amount of new loans granted to its customers during 2011 is 30.6
million EUR (equivalent), most of them being granted to small and
micro entrepreneurs and agricultural producers with limited or no
access to current financial system.
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