IFC and Patria Credit Help Expand Microcredit in Romania, Boosting EntrepreneursPublish date: 22-10-2012
IFC, a member of the World Bank Group, and Patria Credit are partnering to increase access to finance for micro and small entrepreneurs in Romania, supporting more equitable growth in the country.
IFC is providing a 36.6 million Romanian lei ($10.4 million) loan to Patria Credit, Romania's largest non- banking microfinance institution reaching more than 12,000 clients in 29 provinces. This financing is consistent with the World Bank Group's strategy in Romania to increase economic growth and competitiveness, reduce poverty and inequality, and expand growth by providing access to finance for smaller companies, low and middle-income households.
"IFC's support will allow us to increase financial inclusion and reduce gaps in the formal financing for local microenterprises, many of which are managed by women,” said Bogdan Merfea, Patria's CEO.
K. Aftab Ahmed, IFC Director for Financial Markets in Europe, Central Asia, Middle East and North Africa, said, "We are working with Patria to ensure that finance continues to flow to businesses and people that need it. Our loan will increase funding to the smaller companies that generate a large share of growth and employment opportunities in the country.”
Romania became a member of IFC in 1990. IFC's investment portfolio in Romania stands at nearly $600 million. IFC's role in Romania is changing in light of the country's EU membership and the growing availability of private financing. IFC in Romania is focused on agriculture, general manufacturing, infrastructure, and health. IFC also invests in the financial markets and works to provide access to finance for smaller businesses in Romania.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. For more information, visit www.ifc.org.
About Patria Credit
Patria Credit was established in 2007 by the Romanian America Enterprise Fund (RAEF), which took over ownership of Capa Finance and rebranded it Patria Credit in 2009. With 42 branches and over 12,000 customers, Patria's strategy targets small entrepreneurs and agricultural producers, extending access to financial services in both urban and rural areas.
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