Finance for micro-enterprises in Romania as EIF and Banca Transilvania sign agreement under Progress Microfinance

The EIF and Banca Transilvania have signed a EUR 7.5 million loan agreement aimed at supporting micro-enterprises and self-employed entrepreneurs in Romania.

This transaction was signed under the European Progress Microfinance Facility (Progress Microfinance), funded by the European Commission and the European Investment Bank and managed by the European Investment Fund. Banca Transilvania is the third institution active in Romania under this facility.

Thanks to this agreement, Banca Transilvania will provide a total amount of up to EUR 15 million to micro-entrepreneurs across Romania, with a particular focus on supporting self-employed entrepreneurs. This agreement will provide easier access to finance to around 1,500 Romanian micro-enterprises and encourage entrepreneurship.

The transaction will allow Banca Transilvania, positioned as the Bank for Entrepreneurial People, to continue and further develop its current lending activity to small and micro-enterprises in Romania.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can contact Banca Transilvania’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. The European Investment Fund (EIF) acts as Management Company on behalf of the EU Microfinance Platform FCP-FIS - European Progress Microfinance Fund, the main vehicle through which Progress Microfinance is implemented. 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.

Banca Transilvania marks the 18th transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of EUR 74.2 million under Progress Microfinance have been signed to benefit EU micro-borrowers. Countries where agreements have been signed to date include Belgium, Bulgaria, Cyprus, France, Greece, Lithuania, Poland, Romania, Slovenia, Spain and The Netherlands.

For further information about this initiative please visit the European Commission website: www.ec.europa.eu/epmf

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 6bn at end 2011. With investments in over 370 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 guarantees loan portfolio totalled over EUR4.4bn in close to 220 operations at end 2011, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Banca Transilvania

Banca Transilvania® (BT) is among the first 3 banks in Romania, in terms of assets. Its mission, as a private bank with majority Romanian capital, is to support the business environment through innovative services and products. BT’s activity is organised on 4 main business lines: retail, SME, corporate, and the Healthcare Division. Banca Transilvania has over 6.000 employees, a network of over 550 units and 1.5 million active clients. BT is the first banking institution in Romania to be listed on the Bucharest Stock Exchange (BSE) in 1997. Its strategy is supported by powerful shareholders, such as: EBRD - which holds 15% of share capital; Bank of Cyprus and IFC, the Investment Division of the World Bank. For more information: http://www.bancatransilvania.ro/

Press Contacts

EIF: David Yormesor, Communication officer,  d.yormesor@eif.org

Banca Transilvania: Laura Petrehuş – Head of PR office; laura.petrehus@btrl.ro; Anca Rarau – Marketing & Communication Manager; anca.rarau@btrl.ro, +40264.407.150;