July 3 (SeeNews) - Romania's Patria Bank, formerly known as Nextebank, said on Tuesday it has accessed 20 million euro ($23.3 million) in financing from the European Investment Fund (EIF).
The bank will use the funding to grant loans under the Employment and Social Innovation (EaSI) programme, it said in a press release.
EaSI is a financing instrument at EU level to promote a high level of quality and sustainable employment, guaranteeing adequate and decent social protection, combating social exclusion and poverty and improving working conditions.
Patria Bank noted that it is the first bank in Romania to have accessed an EIF funding ceiling since 2015, crediting over 1,200 small and medium-sized entrepreneurs, including agricultural businesses, to date.
"We are optimistic that this second ceiling of 20 million euro will contribute to local business development of local and will also contribute to financial inclusion and economic promoted and supported us and by Patria Bank," EIF Head of Microfinance Per-Erik Eriksson said.
The EaSI credit without material guarantees can be requested by Romanian micro-enterprises, which have a maximum of nine employees and a turnover of no more than 2 million euro per year.
Patria Bank Romania is owned by Patria Bank Group, whose main shareholder is the Emerging Europe Accession Fund (EEAF) equity fund.
In April 2017, a Bucharest court approved the merger of Romanian lender Banca Comerciala Carpatica and its majority owner Patria Bank, formerly known as Nextebank.
($=0.8573 euro)
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