InvestEU: Romanian microfinance strengthened by new European Investment Fund backing for BT Mic
27 September 2022 Reading time 4:00 minutes
First InvestEU engagement in Romania
7,500 microenterprises across the country to benefit
EUR 8.4 million guarantee to support EUR 100 million new microfinance loans
Access to microfinance by entrepreneurs and farmers across Romania will be enhanced by new cooperation between the European Investment Fund and BT Mic, Romania’s largest microfinance institution formally announced in Bucharest today.
This is expected to unlock investment targeting more than 7,500 microenterprises across Romania and improve access to finance for micro-entrepreneurs and small-scale farmers.
The new cooperation represents the first operation in Romania to be backed by InvestEU and was announced at the formal launch of InvestEU at the European Investment Bank Group’s Representation to Romania.
The latest European Investment Fund support for microfinance in Romania was formally signed by Hubert Cottigni, Director of the European Investment Fund and Cristina Sindile, General Manager of BT Mic.
"BT Mic understands the development needs of entrepreneurs with small businesses in Romania. The new collaboration with the EIF follows the successful cooperation in recent years, which has helped companies in these difficult times. We are delighted to be the first partner in Romania to benefit from InvestEU's support", said Cristina Sindile, General Manager of BT Mic.
“With economic pressure on the rise, it is always the smallest that are hardest hit and most in need of support. That is why this microfinance transaction is both relevant and timely. The EIF is proud to be partnering once more with BT Mic to channel EU resources in the direction of micro-entrepreneurs so that they are better positioned to pursue their aspirations for growth.”
said Hubert Cottigni, Director of the European Investment Fund.
Under the latest cooperation the European Investment Fund will provide EUR 8.4 million (42 million RON) to guarantee microfinance operations in amount of RON 500 million (EUR 100 million) by BT Mic, the dedicated microfinance subsidiary of Banca Transilvania, Romania’s largest banking group.
"The European Investment Bank Group is committed to ensuring that entrepreneurs in Romania can expand business opportunities and create jobs. The latest cooperation, worth €8.4 million, with BT Mic, Romania's main microfinance partner, aimed at mobilising €100 million in loans, will further strengthen access to finance for small businesses across the country and support thousands of new microfinance loans. This first investment in Romania, supported by InvestEU, demonstrates how the programme will unlock transformational investments in the years to come," said Christian Kettel Thomsen, Vice-President, European Investment Bank.
"Microfinance can play a crucial role in creating jobs and promoting social inclusion. Thanks to funding under the social arm of InvestEU, micro and small-scale farmers, who would otherwise have difficulty accessing loans, will be able to start or grow their businesses and open a better future for themselves and their families," said Nicolas Schmit, Commissioner for Jobs and Social Rights.
This new agreement with BT Mic, the dedicated microfinance subsidiary of Banca Transilvania, Romania’s largest banking group, shall ensure enhanced access to finance for very small entrepreneurs, with direct impact on the job creation and economic development in the served communities. The European Investment Fund has backed BT Mic’s microfinance operations with four initiatives over the last four years. The new cooperation represents the first operation in Romania to be backed by InvestEU and was announced at the formal launch of InvestEU at the European Investment Bank Group’s Representation to Romania.
09 MAY 2023