The European Bank for Reconstruction and Development (EBRD), a development finance institution headquartered in London, made two loans worth USD 90 million to support microfinance in Romania and the Russian Far East. Patria Credit SA (formerly called CAPA Finance), a microfinance institution (MFI) established in Romania in 1996, received a loan equivalent to USD 13 million that was denominated part in euros and part in Romanian leu. EBRD extended the loan under the European Union Romania Microcredit Facility (RMCF), which makes loans to banks and microfinance institutions in euros or local currency for on-lending to micro- and small-scale entrepreneurs and farmers. In 2009 Patria Credit reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, a gross loan portfolio (GLP) of USD 46.2 million, total assets of USD 54.1 million, return on assets (ROA) of -2.40 percent and return on equity (ROE) of -7.43 percent [1].
In Russia, EBRD made a three-year, local-currency loan equivalent to USD 77 million to Orient Express Bank, which was established in 1991. The loan was made through the Russia Small Business Fund (RSBF) of EBRD to help expand Orient Express Bank’s lending to micro- and small businesses. RSBF is financed by Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Switzerland. Orient Express Bank has a large presence in the Russian Far East. The bank reported total assets equivalent to USD 1.7 billion and total shareholders’ equity equivalent to USD 249 million as of 2009. Orient Express Bank does not report to MIX [2].
By Julie Moksim, Research Associate
About European Bank for Reconstruction and Development (EBRD): EBRD is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of forty countries and is now owned by sixty-one countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in twenty-nine countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). Operating assets for fiscal 2009 were EUR 6.1 billion (USD 8 billion).
About Patria Credit SA: Patria Credit (formerly CAPA Finance) is a microfinance institution (MFI) that was established in 1996 in Romania. The MFI’s mission is to provide financial services to low-income individuals and micro- and small-scale entrepreneurs. In 2009 Patria Credit reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, a gross loan portfolio (GLP) of USD 46.2 million, total assets of USD 54.1 million, return on assets (ROA) of -2.40 percent and return on equity (ROE) of -7.43 percent.
About Orient Express Bank: Orient Express Bank was established in Russia in 1991 and currently has 358 branches in 160 cities, with a strong presence in the Russian Far East. The bank offers retail, mortgage and automobile loans; diversified credit programs; and other commercial banking services. Orient Express Bank reported total assets equivalent to USD 1.7 billion and total shareholders’ equity equivalent to USD 249 million as of 2009. Orient Express Bank does not report to MIX.
[1] European Bank for Reconstruction and Development (EBRD): “EBRD Continues to Support Micro and Small Enterprises in Romania: EUR 10 Million Equivalent Loan to Patria Credit”, by Ina Coretchi, December 15, 2010, http://www.ebrd.com/english/pages/news/press/2010/101215a.shtml
[2] European Bank for Reconstruction and Development (EBRD): “EBRD Loan Targets Small and Micro Businesses in Russian Far East: Orient Express Bank Gets 2.3 Billion Rouble ($77m) Three-Year Loan”, by Richard Wallis, December 16, 2010, http://www.ebrd.com/english/pages/news/press/2010/101216.shtml
MicroCapital’s Microfinance Universe Profile: European Bank for Reconstruction and Development (EBRD)
MicroCapital’s Microfinance Universe Profile: Patria Credit SA
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Patria+Credit+SA
MicroCapital’s Microfinance Universe Profile: Orient Express Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Orient+Express+Bank
MicroCapital.org Article, November 30, 2010: European Bank for Reconstruction and Development (EBRD) Loans $65m to Bank Saint Petersburg of Russia and $4m to Microfinance Institution (MFI) fondiBESA of Albania, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-65m-to-bank-saint-petersburg-of-russia-and-4m-to-microfinance-institution-mfi-fondibesa-of-albania/
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