This agreement will allow Libra Internet Bank to provide enhanced access to finance to micro-entrepreneurs, in particular to young entrepreneurs in Romania, many of whom face difficulties in accessing credit from traditional banking sources.
Progress Microfinance is funded by the European Commission and managed by the European Investment Fund.
Commenting on the agreement in Bucharest, Microfinance Investment Manager, Cristina Dumitrescu said: “We are pleased to sign this guarantee agreement in Romania under Progress Microfinance with Libra Internet Bank.I am convinced that this finance will help to benefit micro-enterprises, in particular young entrepreneurs willing to establish their own company and contribute to the economic growth and social inclusion in Romania”.
The transaction will allow Libra Internet Bank, to continue further developing its current lending activity to small and micro-enterprises in Romania.
Libra Internet Bank President, Emil Bituleanu, stated: “Micro-entreprises have been a traditional focus for Libra Internet Bank – be they liberal professions, farmers or start-ups. We take pride in the strong partnerships we have established and we stand by our clients for the long run. This is why we continually strive to find new solutions to support development of their business. Our agreement with the European Investment Fund is such an opportunity and we are happy to have the support of a respected European institution.”
Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact Libra Internet Bank’s branches in Romania.
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 205 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 direct financing to micro-entrepreneurs or individuals.
Libra Bank marks the 53rd transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of over EUR 130 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, The Netherlands and the UK.For further information about this initiative please visit: www.ec.europa.eu/epmf
About EIF
The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance 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. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, 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. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.
More information about EIF is available on www.eif.org.
About Libra Internet BankLibra Internet Bank is a bank registered in Romania, abiding by Romanian laws and by the surveillance norms of the Romanian National Bank. It is also a contributor to the Romanian Banking System Deposit Guarantee Fund, i.e. its clients’ deposits are guaranteed under the conditions and limits of Romanian law.
The bank’s main client categories are liberal professions, farmers, SME’s, and large enterprises. The bank has been part of American investment group New Century Holdings’ portfolio for 11 years and, in 2011, it rebranded itself as an „Internet-enabled bank”, with one of the best-performing, most awarded Internet Banking application in the Romanian banking market.
Libra Internet Bank has a network of 35 branches country-wide and, with assets amounting to RON 1,202,192,716 at the end of 2013, and 4 years of continued growth, it ranks 28th in the Romanian banking system.
Press contacts:
EIF: David Yormesor, d.yormesor@eif.org
Libra Internet Bank: Raluca Ursu, raluca.ursu@librabank.ro, +40 744 500 416
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