The European Investment Fund (EIF) and Patria Credit have signed a guarantee agreement aimed at supporting micro-businesses and selfemployed entrepreneurs in Romania

The European Investment Fund (EIF) and Patria Credit have signed arnguarantee agreement aimed at supporting micro-businesses and selfemployed entrepreneurs in Romania, said the bank in a statement.rnrnThis transaction was signed under the European Progress MicrofinancernFacility (Progress Microfinance), funded by the European Commissionrnand managed by the European Investment Fund.rnrnThanks to this signature, Patria Credit will be able to provide micro-loansrn(from EUR 10 000 to just below EUR 25 000) to micro-businesses andrnstart-ups across Romania, without requesting real collateral (exceptrnpersonal guarantees) whilst offering reduced interest rates. PatriarnCredit will now be able to provide loans to customers it otherwisernwould not be able to finance.rnrnIt is expected that Patria Credit will provide about EUR 8 million ofrnmicrocredit over the next 2 years under this European ProgressrnMicrofinance Facility guarantee. This is in addition to a loan PatriarnCredit received under Progress Microfinance in May creating arnmicroloan pot of EUR 8 million.rnrnMicro-enterprises wishing to apply for a micro-loan under ProgressrnMicrofinance can contact Patria Credit’s branches in Romaniarndirectly.rnrnAbout the European Progress Microfinance FacilityrnrnThe European Progress Microfinance Facility (Progress Microfinance)rnprovides guarantees and funded instruments to microfinancernintermediaries. The initiative is established with EUR 203 million ofrnfunding from the European Commission and the European InvestmentrnBank. Progress Microfinance aims to increase access to finance forrnmicro-entrepreneurs, including the self-employed. It has a particularrnfocus on, but is not restricted to, groups with limited access to thernconventional credit market. Examples include female entrepreneurs,rnyoung entrepreneurs, entrepreneurs belonging to a minority group,rnentrepreneurs with a disability, sole traders etc. Loans less than EURrn25,000 are made available through selected intermediariesrnparticipating in the facility. Progress Microfinance does not providernfinancing or guarantees to micro-entrepreneurs or individuals directly.rnrnAbout the EIFrnrnEIF’s central mission is to support Europe’s small and medium-sizedrnbusinesses (SMEs) by helping them to access finance. EIF designs andrndevelops venture capital and guarantees instruments whichrnspecifically target this market segment. In this role, EIF fosters EUrnobjectives in support of innovation, research and development,rnentrepreneurship, growth, and employment. The EIF total netrncommitments to private equity funds amounted to over EUR 5.4bn atrnend 2010. With investments in over 300 funds, the EIF is a leading playerrnrnin European venture due to the scale and the scope of its investments,rnespecially in high-tech and early-stage segments. The EIF commitmentrnin guarantees totalled over EUR 14.7bn in close to 160 operations atrnend 2010, positioning it as a major European SME guarantees actorrnand a leading micro-finance guarantor.rnrnAbout Patria CreditrnrnPatria Credit is a non-bank financial institution, controlled by thernRomanian American Enterprise Fund and the Balkan Accession Fund,rnwhich provides lending to micro and small entrepreneurs and tornagricultural producers. Patria Credit is operating since 1996 and is onernof the most important financial intermediaries for micro-enterprises andrnlow-income borrowers in Romania. At the end of 2011, the companyrnwas serving a number of over 12,000 customers through a network of 15 branches in large cities and 27 branches located in rural areas. Therntotal amount of new loans granted to its customers during 2011 is 30.6rnmillion EUR (equivalent), most of them being granted to small andrnmicro entrepreneurs and agricultural producers with limited or nornaccess to current financial system.