Romania is close to reaching its micro-financing ceiling of EUR 18 million and has displayed a good level of use for these funds, according to the EU.

Romania has so far used EUR 16.5 million of its micro-financing budget, part of the European Progress Microfinance Facility.

Romania got almost a third of the financing granted so far, EUR 50 million, with three micro-loans providers included in the program, Banca Transilvania, FAER and Patria Credit,

In total, 6,000 entrepreneurs have received financing from EU to expand their businesses.

In particular, microfinance facilitates self-employment and entrepreneurship among groups who typically have more difficulties raising money, such as young people and minorities.

In Romania, the chunk of financing was given through Banca Transilvania, EUR 7.5 million, followed by Patria Credit, some EUR 6 million, and FAER, EUR 700,000.

The amount granted via Banca Transilvania was the second largest, after Sberbank banka from Slovenia, as of March 2013.

The European Progress Microfinance Facility (Progress Microfinance), launched in 2010, increases the availability of microcredit-loans below EUR 25 000 for setting up or developing a small business.

Progress Microfinance does not directly finance entrepreneurs, but enables selected microcredit providers in the EU to increase lending.

Loans of less than EUR 25,000 are granted for unemployed people, people at a risk of losing their jobs and people from disadvantaged groups, such as young or older people or migrants.

A recent report indicated that almost one third of final beneficiaries said they were unemployed or inactive when they applied.

Almost 80 percent of the micro-companies supported are start-ups operating for less than three years.

Agriculture and trade remain the two sectors receiving most support from the Facility, accounting for more than a half of all supported enterprises across the EU.

The entire budget for microfinancing until 2020 will be of EUR 170 million.

editor@romania-insider.com