Brussels, 27 September 2022
Access to microfinance by entrepreneurs and farmers across Romania will be enhanced by new cooperation between the European Investment Fund and BT Mic, Romania’s largest microfinance institution formally announced in Bucharest today.
This is expected to unlock investment targeting more than 7,500 microenterprises across Romania and improve access to finance for micro-entrepreneurs and small-scale farmers.
The new cooperation represents the first operation in Romania to be backed by InvestEU and was announced at the formal launch of InvestEU at the European Investment Bank Group’s Representation to Romania.
The latest European Investment Fund support for microfinance in Romania was formally signed by Hubert Cottigni, Director of the European Investment Fund and Cristina Sindile, General Manager of BT Mic.
“Microfinance can play a crucial role in creating jobs and promoting social inclusion. Thanks to financing under InvestEU’s social strand, micro-entrepreneurs and small-scale farmers who might otherwise find it difficult to access loans will be able to start up or develop their businesses, and unlock a brighter future for themselves and their families.” said Nicolas Schmit, Commissioner for Jobs and Social Rights.
“BT Mic understands the growing needs of small business owners across Romania. The new cooperation with the EIF follows the successful cooperation over recent years that has helped companies to grow during these challenging times. BT Mic looks forward to using the new EIF backing to build on this crucial contribution and are pleased to be the first partner in Romania to be backed by InvestEU.” said Cristina Sindile, General Manager of BT Mic.
“With economic pressure on the rise, it is always the smallest that are hardest hit and most in need of support. That is why this microfinance transaction is both relevant and timely. The EIF is proud to be partnering once more with BT Mic to channel EU resources in the direction of micro-entrepreneurs so that they are better positioned to pursue their aspirations for growth.” said Hubert Cottigni, Director of the European Investment Fund.
Under the latest cooperation the European Investment Fund will provide EUR 8.4 million (42 million RON) to guarantee microfinance operations in amount of RON 500 million (EUR 100 million) by BT Mic, the dedicated microfinance subsidiary of Banca Transilvania, Romania’s largest banking group.
“The European Investment Bank Group is committed to ensuring that entrepreneurs across Romania can expand business opportunities and create jobs. The latest EUR 8.4 million cooperation with leading Romanian microfinance partner BT Mic, which aims to mobilise loans in amount of EUR 100 million, will further strengthen access to business finance across the country and support thousands of new microfinance loans. This first operation in Romania backed by InvestEU demonstrates how InvestEU will unlock transformational investment in the years ahead.” said Christian Kettel Thomsen, European Investment Bank Vice President.
This new agreement with BT Mic, the dedicated microfinance subsidiary of Banca Transilvania, Romania’s largest banking group, shall ensure enhanced access to finance for very small entrepreneurs, with direct impact on the job creation and economic development in the served communities. The European Investment Fund has backed BT Mic’s microfinance operations with four initiatives over the last four years. The new cooperation represents the first operation in Romania to be backed by InvestEU and was announced at the formal launch of InvestEU at the European Investment Bank Group’s Representation to Romania.
About InvestEU
The InvestEU programme provides the European Union with crucial long-term financing by mobilising significant public and private funds to support a sustainable recovery. It helps generate additional investments in line with key European priorities, such as the European Green Deal, the digital transition and support for SMEs. The InvestEU programme brings together all EU financial tools to support investment by making project financing simpler, more efficient and more flexible. The programme, which builds on the success of the previous Investment Plan for Europe, also known as the “Juncker Plan” (more than €500 billion invested over the period 2015-2021), has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented via various financial partners, particularly the EIB. They will invest in projects by using the EU budget guarantee of €26.2 billion to mobilise at least €372 billion in additional investments.
About European Investment Fund
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
About BT Microfinanțare
BT Microfinanțare (BT Mic) is part of the Banca Transilvania Financial Group and addresses companies with an annual turnover of up to 1 million RON from all fields of activity. BT Mic ensures the access to financing: over 70% of the customers obtained their first business loan via BT Mic.
So far, BT Mic has supported more than 20,000 small businesses to grow.
Source – EU Commission