BT Mic receives funding from IFC to increase access to finance for micro businesses

IFC, part of the World Bank Group, is providing $16 million, equivalent in lei, to BT Mic to increase access to finance for microenterprises and facilitate the financial inclusion of women entrepreneurs in Romania.

Non-bank financial institutions play an important role in the financing of microenterprises, which account for less than 2% of GDP in Romania. Half of IFC financing goes to women-owned microenterprises, with the aim of encouraging them to play a more important role in the economy.

"IFC's support will enable BT Mic to provide much-needed financing for start-ups and small businesses in Romania," says Cristina Șindile, CEO of BT Mic. "The availability of financing for these small entrepreneurs is essential for the sustainability of their business and their ability to create jobs and contribute to the development of the economy."

"Increasing access to finance for segments that deserve more attention, such as micro-businesses, is an essential mechanism for supporting private sector development, especially in Romania's less developed regions," said Vittorio Di Bello, IFC senior manager for Europe and Central Asia. "We expect that this funding will contribute in particular to boosting financial intermediation for women entrepreneurs."

BT Mic is a company of Banca Transilvania Financial Group, dedicated to financing small businesses, including start-ups, which complements BT's role in supporting Romanian entrepreneurs. It is aimed at entrepreneurs with a turnover of up to RON 1 million, regardless of the field of activity and form of organisation - commercial companies, authorised individuals, family businesses/associations, sole proprietorships, self-employed persons, persons carrying out economic activities. So far, BT Mic has supported 10,000 micro-enterprises.

The IFC is an organisation of the World Bank, the largest global economic development institution with a focus on the private sector in emerging markets. It works with more than 2,000 companies around the world, using the institution's capital, expertise and influence to create markets and opportunities where they are most needed. In 2019, IFC provided more than $19 billion in long-term financing to developing countries in a bid to increase the power of the private sector to end extreme poverty and boost shared prosperity.