The European Investment Fund (EIF) and the Romanian lender Banca Transilavnia (BT) have recently signed a EUR 7.5 million loan agreement to give small businesses and entrepreneurs in Romania a helping hand. Funding will come from the European Commission and the European Investment Bank and will be managed by the European Investment Fund.

Via the agreement, Banca Transilvania can provide up to EUR 15 million to Romania's smallest business ventures, with the main focus on supporting self-employed entrepreneurs. This agreement will provide easier access to finance to some 1,500 Romanian micro-enterprises. Banca Transilvania is the third institution in Romania to join this facility.

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 203 million of funding from the European Commission and the European Investment Bank.

The collaboration with Banca Transilvania is the 18th transaction signed under Progress Microfinance since starting in 2010. Until now, EUR 74.2 million has been signed off for EU micro-borrowers. Countries where agreements have been signed to date include Belgium, Bulgaria, Cyprus, France, Greece, Lithuania, Poland, Romania, Slovenia, Spain and The Netherlands.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Photoxpress.com)