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Dec 08, 2023 15:42 EEST
December 8 (SeeNews) - The Council of Europe Development Bank (CEB) said on Friday that it is providing a 10 million euro ($10.8 million) loan to Romanian financial non-bank institution Patria Credit to support small farmers and rural businesses.
The loan is part of a financing programme worth 20 million euro, half of which is provided by Patria Credit, CEB said in a press release on Friday.
You can download the 2023 Agriculture industry in Southeast Europe report here
The programme will focus on small agricultural producers with less than 50 hectares of cultivated land or equivalent other agricultural activities, small rural enterprises with a turnover of up to 200,000 euro, and small businesses with less than ten employees. Part of the resources will support women-owned businesses.
“Through this loan, we are partnering with Patria Credit IFN SA to improve access to finance for microenterprises, with a focus on vulnerable groups and social impact,” Tomas Bocek, CEB Vice-Governor for Target Group Countries, said.
The project is aimed at promoting self-employment and focuses on helping entrepreneurs further develop income-generating activities that foster job maintenance and creation in rural areas.
The CEB financing enables Patria Credit to expand beyond its current client base and target remote small farmers who are often overlooked by traditional lenders who label them as “unbankable” due to limited collateral and weak financial literacy.
Through CEB’s support, Patria Credit will also accelerate its digital transformation, bringing it close to small entrepreneurs from remote areas and allowing it to expand its work in rural communities.
The loan is supported by an InvestEU guarantee agreement between the CEB and the European Commission (EC) worth up to 159 million euro. The agreement is expected to mobilise around 500 million euro in additional loans for social projects in Europe.
Patria Credit is a non-bank financial institution specialised in financing farmers and micro-enterprises.
The CEB is a multilateral development bank, whose unique mission is to support social cohesion in its 43 member states across Europe. The bank finances investment in social sectors, such as education, health, and affordable housing.
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