The International Finance Corporation (IFC), the private investment arm of the World Bank Group, recently agreed to loan RON 36.6 million (USD 10.3 million) to Patria Credit, a non-banking microfinance institution in Romania, with the goal of enhancing access to finance for micro- and small-scale entrepreneurs in Romania. Patria Credit serves approximately 12,000 clients in 29 provinces. Patria Credit CEO Bogdan Merfea remarked, “IFC’s support will allow us to increase financial inclusion and reduce gaps in formal financing for local microenterprises, many of which are managed by women.” As of 2011, Patria Credit reports to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 69 million, a gross loan portfolio of USD 61 million, approximately 12,340 borrowers, return on assets (ROA) of 1.87 percent and return on equity (ROE) of 5.24 percent.
Romania has been a member of IFC since 1990. IFC’s investment portfolio in Romania stands at approximately USD 690 million as of July 2012. IFC’s foci in Romania include agriculture, manufacturing, infrastructure and health.
By Chioma Okwudiafor, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the World Bank group, 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 2011, IFC has 182 member countries, total assets of USD 68.5 billion and USD 12.2 billion mobilized to 518 projects..
About Patria Credit
Patria Credit (formerly known as CAPA Finance) is a microfinance institution (MFI) that was established in by the -BASED Romanian-America Enterprise Fund (RAEF) in 1996 in Romania. With 42 branches and 12,000 customers, Patria Credit’s mission is to provide financial services to low-income individuals and micro- and small-scale entrepreneurs. As of 2011, Patria Credit reports to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 69 million, a gross loan portfolio of USD 61 million, approximately 12,340 borrowers, return on assets (ROA) of 1.87 percent and return on equity (ROE) of 5.24 percent.
Sources and Additional Resources:
IFC Press Release: IFC and Patria Credit Help Expand Microcredit in Romania, Boosting Entrepreneurs
http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/B84FF2096A2808D885257A9F00404BDB?OpenDocument
MicroCapital Universe Profile: International Finance Corporation (IFC)
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=International+Finance+Corporation+%28IFC%29
MicroCapital Universe Profile: Patria Credit
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Patria+Credit+SA
MicroCapital Story: December 30, 2010, MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $90m to Patria Credit of Romania and Orient Express of Russia for Microfinance and Small Business Lending
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-90m-to-patria-credit-of-romania-and-orient-express-of-russia-for-microfinance-and-small-business-lending/
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