BUCHAREST (Romania), January 17 (SeeNews) -The European Fund for Southeast Europe (EFSE) said on Thursday it has provided a loan equivalent to 7 million euro ($7.9 million) to BT Microfinantare (BT Mic) to support micro and small enterprises (MSEs) and individual entrepreneurs (MSEs) in Romania.
The loan was provided in Romanian lei.
BT Mic, part of Banca Transilvania financial group (BT), is exclusively focused on financing MSEs, a still largely underserved segment in Romania, but a key contributor to employment and economic growth in the country, EFSE said in a press release.
"The ability for micro and small businesses to access financing appropriate to their needs is crucial for the development of this important sector. Ensuring that entrepreneurs can take out loans in their own local currency protects these vulnerable small businesses from exchange rate risks that can seriously threaten their sustainability and success," EFSE board chairman, Christoph Tiskens, said.
To date, BT Mic supports the business development of over 7,000 entrepreneurs; with the EFSE loan, the institution is expected to further increase its outreach.
"The EFSE and BT Mic partnership is an important pillar in expanding access to financing for start-ups or small businesses, allowing us to support more business ideas and more young entrepreneurs," BT Mic CEO, Cristina Sindile, said.
The loan is not EFSE’s first collaboration with BT Mic. Prior to the loan, the EFSE Development Facility had provided BT Mic with tailored technical assistance to enhance its institutional capacities in serving MSEs.
EFSE was initiated by German development bank KfW with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia, Bulgaria, Croatia, Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.
BT Mic is dedicated to the financing of small businesses, complementing the role of BT in supporting Romanian entrepreneurs. It targets entrepreneurs with an annual turnover of up to 1.0 million lei ($244,000/213,000 euro), regardless of the field of activity and the form of organization.
($ = 0.8769 euro)
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