The World Bank Group’s International Finance Corporation (IFC) recently loaned USD 16 million to BT Mic, a lender to small businesses that is controlled by Romania’s Transilvania Bank Group. The funding is intended to finance micro- and small enterprises (MSEs) in Romania, with a particular focus on female-owned enterprises.
BT Mic’s CEO, Cristina Sindile, said, “IFC’s support will enable BT Mic to provide much-needed financing for startups and small businesses in Romania. The availability of financing for these small entrepreneurs is crucial for their sustainability and capacity to create jobs and contribute to the economy.”
Vittorio Di Bello, IFC’s Regional Industry Head of the Financial Institutions Group for Europe and Central Asia, said that the funding of MSEs “is an important mechanism to support the development of the private sector, especially in less developed regions in Romania. We expect this financing to help boost financial intermediation for women entrepreneurs.”
BT Mic, which officially opened its doors in 2017, targets enterprises with a cashflow of no more than RON 1 million (USD 226,000) per year. As of 2020, BT Mic serves 10,000 customers.
As of September 2019, Banca Transilvania Group reported total assets of RON 86.4 billion (USD 19.5 billion). BT operates in 180 cities, serving 3 million customers in Italy, Moldova and Romania.
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2019, it reported total assets of USD 94.3 billion.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2020, it has 189 member nations. The group encompasses: (1) IFC; (2) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes.
Sources and Additional Resources
IFC press release
https://ifcextapps.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/28E350CF53BDF2A7852584FF004983C5
BT Mic homepage
https://www.btmic.ro/
Banca Transilvania homepage
https://www.bancatransilvania.ro/
Banca Transilvania financials
https://www.bancatransilvania.ro/en/investor-relations/financial-results/
Banca Transilvania background
https://www.bancatransilvania.ro/bt-social-media-newsroom/en/news/banca-transilvania-first-25-years/
IFC homepage
https://www.ifc.org/
World Bank homepage
https://www.worldbank.org/
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https://www.microcapital.org/microcapital-brief-davivienda-of-colombia-borrows-335m-from-ifc-to-increase-lending-for-women-owned-smes-housing/
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