September 27 (SeeNews) - The European Investment Fund (EIF) said on Tuesday that it has signed a 8.4 million euro guarantee agreement with microfinancing company BT Mic to unlock over 100 million euro ($96.22 million) in loans for microenterprises in Romania.
The funds will be used for backing microfinance loans worth 100 million euro and will benefit 7,500 microenterprises across improving access to finance for micro-entrepreneurs and small-scale farmers, EIF said in a press release.
This agreement with BT Mic will ensure enhanced access to finance for very small entrepreneurs, with direct impact on the job creation and economic development in the served communities, the EIF added.
The European Investment Fund, part of the European Investment Bank Group, helps micro, small and medium-sized businesses access finance.
BT Mic, the dedicated microfinance subsidiary of Romanian lender Banca Transilvania [BSE:TLV], addresses companies with an annual turnover of up to 1 million lei ($195,560/202,318 euro) from all fields of activity. So far, the company has supported over 20,000 small businesses.
Banca Transilvania's shares traded 3.06% higher at 17.52 lei by 1457 CET on Tuesday, data from the Bucharest Stock Exchange shows.
($=1.0393 euro)