What we do
Equity products
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
Pan-European Venture Capital Fund(s)-of-Funds programme
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
Debt products
AGRI Guarantee Facility
AGRI Italy Platform Uncapped Guarantee Instrument
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
EREM debt products
Single EU Debt Financial Instrument
COSME - Loan Guarantee Facility
InnovFin SME Guarantee Facility
Documentary Finance Facility – Bulgaria
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Asset Management Umbrella Fund (AMUF)
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
EaSI Funded Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Croatian Growth Investment Programme (CROGIP)
AGRI Italy Platform Uncapped Guarantee Instrument
ALTER’NA – ESIF EARFD Nouvelle-Aquitaine
Baltic Innovation Fund (BIF)
Central Europe Fund of Funds (CEFoF)
Croatian Venture Capital Initiative (CVCi FoF)
Competitiveness Fund-of-Funds for SMEs in Romania
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
Dutch Growth Co-Investment Programme
Dutch Venture Initiative (DVI-II)
EAFRD FoF Portugal
EAFRD FoF Romania
European Recovery Programme (ERP)
ERP-EIF Co-Investment Growth Facility
INAF – French National Agricultural Initiative
Regional Fund-of-Funds Romania
ESIF Fund-of-Funds Czech Republic
ESIF Fund-of-Funds Greece
The Silesia EIF Fund of Funds
La Financière Région Réunion
The EIB Group Risk Enhancement Mandate (EREM)
EstFund
FOSTER TPE-PME Occitanie
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
InvestBG Equity Instrument
JEREMIE
JEREMIE Romania Reflows – Equity Instrument
LfA-EIF Facility
Luxembourg Future Fund (LFF)
Mezzanine 'Fund of Fund' for Germany (MDD)
Polish Growth Fund of Funds (PGFF)
Portugal Venture Capital Initiative (PVCi)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Western Balkans Enterprise Development & Innovation Facility (WB EDIF)

EIF sets up first operations to support microfinance in Romania under the Capacity Building Investments Window of the EU Programme for Employment and Social Innovation

  •  
    Date: 27 June 2019
  • European Investment Fund to increase capacity of Romanian financial institutions Patria Credit and OMRO to support microcredits and microfinancing loans in Romania under the Capacity Building Investments Window of the EU’s Employment and Social Innovation Programme
  • Capacity building for Patria Credit is supported with RON 10m to scale up its businesses and for OMRO with RON 6.5m to enhance its technology, scoring mechanisms and operational flows.

Thanks to financial support under the  EaSI Capacity Building Investments Window, which is managed by the European Investment Fund (EIF) on the European Commission’s behalf, two microfinance institutions in Romania will have more capacity to provide microloans to small businesses.

  • Patria Credit will receive RON 10m to grow its portfolio targeting particularly vulnerable clients excluded from the formal financial sector;
  • OMRO Romania will receive RON 6.5m to acquire and implement new IT solutions aimed at increasing efficiency and strengthening credit risk analysis.

Commenting on the EaSI capacity building investments, EIF Chief Executive Pier Luigi Gilibert, said: “We very much welcome the launch of the implementation of the Capacity Building Investments Window in Romania under the EU Programme for Employment and Social Innovation. This will increase the capacity of financial institutions to improve the access of micro-enterprises to finance as this is crucial for further development of their business activities, which generate many jobs and contribute to GDP growth in the country”.     

European Commissioner for Employment, Social Affairs, Skills and Labour Mobility, Marianne Thyssen, said: “I am delighted with the signature of the first EaSI Capacity Building agreements in Romania. The EU support will allow Patria Credit and OMRO Romania to boost their capacity to provide microfinance to micro-entrepreneurs, including vulnerable persons, who face difficulties in accessing finance. This is a sound investment in a more inclusive Europe.

Patria Credit IFN CEO, Raluca Andreica commented: “We are glad and grateful that our traditional partnership with European Investment Fund and European Union will continue to help rural entrepreneurs to grow through the Capacity Building Investment Window under the Employment and Social Innovation Programme. It strengthens our commitment to further developing our mission of financial inclusion in Romania and helping small rural entrepreneurs to progress and bring prosperity to their communities and families”.

OMRO IFN CEO, János Bereczki commented: We believe that the customer experience, speed of processing, flexibility, quality of underwriting and relationships are essential to the success of micro-enterprises We  welcome the EU involvement in supporting micro-entrepreneurs, as with the help of instruments such as the Capacity Building Investments Window under the Employment and Social Innovation Programme we can now reach more clients with our offer of financial solutions.”

Patria Credit

The EaSI CBI investment of RON 10m will support the intermediary, one of the first microfinance institutions in Romania that is specialised in serving a particularly vulnerable target group in rural areas. Patria has had constant and sustainable growth throughout its 15-year presence, with the main focus on micro enterprises active in the agricultural sector (predominantly vegetables) in rural areas, which lack access to traditional bank finance due to their high risk profile and lack of formal collateral.

The capacity building investment will help Patria Credit to pursue its ambitious growth plans by, inter alia, enhancing its indebtedness capacity, allowing it to attract additional borrowings from senior lenders to finance its portfolio growth.

Patria Credit has recently embarked on a renewed growth path. Being specialised in the agro-sector and rural areas, the institution will be helped to grow its portfolio targeting particularly vulnerable clients excluded from the formal financial sector.

Omro Romania

With the support of RON 6.5m from the EaSI capacity building investment, OMRO Romania will acquire and install a stable, fast, easily customisable and modern technological solution. This will provide the basis for the re-launch of the financial intermediary’s development plans, aimed at offering quality financial services with an ethical and sustainable approach to a larger client base.

The EU-backed EIF intervention in the form of an EaSI capacity building investment is expected to enable the microfinance institution to attract new funding necessary for further growth.

The intermediary will use the EaSI capacity building investment to acquire and implement a new IT core system, to replace the old MIS, aimed at increasing efficiency and strengthening credit risk analysis. The tangible expected impact of the EaSI capacity building investment relates to the origination of higher loan volumes based on better technology, improved scoring mechanisms and efficient operational flows. Over time, these will be reflected in the lower cost of funding, which will be passed on to the final beneficiary, but also in improvements in the portfolio quality levels, given the expected improvements in the client scoring/analysis systems.

About the EU Programme for Employment and Social Innovation (EaSI)

The European Commission’s Programme for Employment and Social Innovation (EaSI) aims at supporting the EU's objective of high level employment, adequate social protection, fighting against social exclusion and poverty and improving working conditions. EaSI contributes to the implementation of the Europe 2020 strategy by supporting the EU's objective of high-level employment, guaranteeing adequate social protection, fighting against social exclusion and poverty and improving working conditions.

The EaSI guarantee scheme was launched in June 2015 and is funded by the European Commission and managed by the European Investment Fund. It provides support to financial intermediaries that offer microloans to entrepreneurs or finance to social enterprises that would not have been able to gain finance otherwise due to risk considerations. The objective is to increase access to microfinance for vulnerable groups who want to set up or develop their business and micro-enterprises, through notably loans of up to EUR 25,000. In addition, for the first time, the European Commission is helping social enterprises through investments of up to EUR 500,000.

Furthermore, the European Commission is reinforcing the social dimension of the European Fund for Strategic Investments (EFSI) for both microfinance and social entrepreneurship. Overall, the total amount of support to these areas is expected to increase (from EUR 193m under the EaSI programme) to about EUR 1bn, mobilising some EUR 3bn in additional investment.

About EaSI Capacity Building Investments Window (CBI)

The EaSI Capacity Building Investments Window is funded by the EU programme for Employment and Social Innovation (EaSI). The objective of this instrument is to build up the institutional capacity of selected financial intermediaries that have not yet reached sustainability or are in need of risk capital to sustain their growth and development. An indicative amount of EUR 26m has been earmarked within the EaSI Programme for this initiative.

About the EIF

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments, which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

Press contacts:

Dušan Ondrejička
d.ondrejicka@eib.org
tel.: +352 4379 83334
mobile: +352 621 459 234

Website: https://www.eif.org/news_centre/press_releases/index.htm

Press Office: +352 4379 21000 – press@eib.org

 

We use cookies to give the best browser experience on our website. or change cookie settings.


 
 

Copyright ©

 European Investment Fund 2019 – The European Investment Fund is not responsible for the content of external internet sites.