The European Investment Fund (EIF) has signed a 5 million Euro loan to Patria Bank, a Romanian lender specialised in financing small and microentrepreneurs with limited access to finance. The Tier II subordinated loan transaction, backed by InvestEU, will help strengthen Patria Bank’s capital position, thus facilitating further growth and development, with the goal of improving access to finance for microentrepreneurs located in rural and small urban areas in Romania. This is the first EIF transaction signed under the InvestEU Capacity Building Investment product.
EIF Chief Executive Marjut Falkstedt said: “During difficult times it’s often the smallest players in the economy that struggle the most. This new agreement between Patria Bank and the EIF builds on our excellent long-term cooperation that started more than ten years ago. So far, more than 6 500 low-income entrepreneurs that typically struggle to secure traditional lending have been able to access finance thanks to our joint support. The new subordinated loan backed by InvestEU will boost Patria’s institutional capacities and support the bank in its mission to facilitate financial and social inclusion in Romania.”
Patria Bank CEO Burak Yildiran said: “We are glad to expand our collaboration with the EIF, which will help us to further help customers and continue our remit to enable more local entrepreneurs to access banking and financial services. Looking at our long-term partnership with EIF we strongly believe that the portfolio of guarantee products provides real support for all microbusinesses (through our EASI product we have provided 6 500 loans), and that with this financial instrument we will continue to play an active role in the local market and contribute to Romania’s economic stability.”
The EIF is part of the European Investment Bank Group. It supports Europe’s small businesses by improving their access to finance through a wide range of selected financial intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds. The EIF designs and offers equity and debt financing instruments fostering EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.
The InvestEU Programme seeks to strengthen economic resilience and promote innovation and job creation in Europe. The initiative aims to support more than 372 billion Euro in investment over the period between 2021 and 2027, using an EU budget guarantee. Projects backed are aligned with EU policy priorities, including competitiveness and the European Green Deal. The European Investment Bank Group, including the European Investment Fund, is the main implementing partner of InvestEU.