The European Investment Fund, a public-private partnership that provides risk finance to lenders to small and medium-sized enterprises (SMEs) in Europe, and Banca Transilvania, a privately-owned Romanian bank, have signed a EUR 7.5 million (USD 10 million) loan agreement under the European Progress Microfinance Facility, an organization that provides grants and funding to microcredit lenders in the European Union. Funding will be provided by the European Investment Bank, a long-term lending institution of the European Union. Banca Transilvania plans to leverage the funds to disburse EUR 15 million (USD 19.8 million) to Romanian microentrepreneurs, with a focus on supporting self-employed entrepreneurs.
The European Investment Fund reported total assets of USD 1.6 billion in 2010. Banca Transilvania reported total assets of USD 6.5 billion for the same year.
By Charlotte Newman, Research Associate
About Banca Transilvania
Banca Transilvania is a privately-owned bank in Romania that was established in 1994. Banca Transilvania is a member of the Banca Transilvania Financial Group, which offers financial services including leasing, securities and asset management. The bank itself has four divisions: Retail, small and medium-sized enterprises (SMEs), corporate and medical. It has approximately 6,000 employees and 400 branches and agencies across the country. In 2010, Banca Transilvania reported total assets of USD 6.5 billion.
About European Investment Fund
The European Investment Fund (EIF) is a provider of risk finance to organizations that lend to small and medium-sized enterprises (SME) in Europe. The fund is a public-private partnership whose shareholding structure includes the European Union’s European Investment Bank; the European Union as represented by the European Commission; and 29 financial institutions from European Union member states plus Turkey and Croatia. EIF is a member of the EIB Group, the parent organization of the European Investment Bank. As of December 31, 2010, EIF reported total assets of EUR 1.2 billion (USD 1.6 billion).
About European Progress Microfinance Facility
The European Progress Microfinance Facility was launched in 2010 and aims to increase the availability of microcredit for small businesses by issuing grants and providing funding to microcredit providers in the European Union. The microcredit providers may be private or public banks, non-bank microfinance institutions or nonprofit microcredit providers. Progress Microfinance is supported by the European Commission and the European Investment Bank and is managed by the European Investment Fund. As of 2012, the European Progress Microfinance Facility funds 14 microcredit providers in ten countries.
Sources and Additional Resources:
Information sent to MicroCapital from the European Investment Fund: Press Release: “Finance for Micro-Enterprises in Romania as European Investment Fund and Banca Transilvania Sign Agreement Under Progress Microfinance.”
Romania Insider: “European Investment Fund and Banca Transilvania Sign EUR 7.5mln Loan Agreement for Supporting Micro-Enterprises in Romania,” http://www.romania-insider.com/european-investment-fund-and-banca-transilvania-sign-eur-7-5-mln-loan-agreement-for-supporting-micro-enterprises-in-romania/53201/
MicroCapital.org story, March 1, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $32m to Garanti Bank Romania for Small and Medium-Sized Enterprises,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-32m-to-garanti-bank-romania-for-small-and-medium-sized-enterprises/
MicroCapital.org story, December 20, 2011, “MICROCAPITAL BRIEF: European Investment Fund (EIF) Released Call for Expression of Interest,” https://www.microcapital.org/microcapital-brief-european-investment-fund-eif-releases-call-for-expression-of-interest/
MicroCapital Universe Profile: Banca Transilvania
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banca+Transilvania
MicroCapital Universe Profile: European Investment Fund
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Fund
MicroCapital Universe Profile: European Progress Microfinance Facility
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Progress+Microfinance+Facility
MicroCapital Universe Profile: European Investment Bank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Bank+%28EIB%29
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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