The European Investment Fund (EIF) has signed a €5 million 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 ultimate 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.”
