Last month an € 8 million loan agreement was signed with the Romanian Microfinance Institution Patria Credit as part of the European Progress Microfinance Facility.
Many micro-entrepreneurs and agricultural producers, in particular in rural areas and smaller cities in Romania, face difficulties in accessing credit from traditional banking sources. The agreement will provide micro-loans of up to €25,000 to support over 2,000 micro-enterprises in Romania. It is the fifth operation and largest loan under the European Progress Microfinance Facility (Progress Microfinance).
Progress Microfinance has a budget of €200 million of funding from the European Commission and the European Investment Bank. It aims to help those who have difficulty accessing credit in particular micro-entrepreneurs and the self-employed. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders, etc.
Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals, but it will work through microfinance providers, such as Patria Credit in Romania.