Microfinance Focus April 2, 2011: The European Fund for Southeast Europe (EFSE) is providing a new EUR 7 million loan to Romanian, SC Patria Credit IFN SA (Patria Credit).

The investment will expand credit access to more than 1,700 micro and small enterprises in rural areas of Romania. Moreover, the local currency component of this loan agreement will enable Patria Credit to mitigate the foreign currency exchange risks for its clients. The EFSE will provide part of the financing in Romanian Leu, allowing Patria Credit to meet the growing demand for long-term local currency financing to MSEs.

The current loan is the second loan Patria Credit has received from the EFSE. It follows a loan dated back to 2006 of EUR 2 million. Until now, the Fund has provided EUR 100 million to the financial sector in Romania for on-lending to local MSEs. Moreover, the EFSE has awarded approximately EUR 0.5 million in technical assistance to Romanian partner lending institutions to help expand their lending to MSEs.

The European Fund for Southeast Europe (EFSE) offers long-term financing to local financial institutions, enabling the granting of business loans primarily to micro and small enterprises as well as housing and home improvement loans to private households. The investment activities of the EFSE are supported by the EFSE Development Facility, which provides technical assistance, consulting and training services to partner lending institutions.