Banca Transilvania’s microfinance arm gets EUR 8.5 mln grant under InvestEU scheme

The European Investment Fund (EIF), a provider of risk finance part of the European Investment Bank (EIB) group, will extend EUR 8.4 mln to support microfinance operations in amount of RON 500 mln (EUR 100 mln) by BT Mic - the dedicated microfinance subsidiary of Banca Transilvania, Romania's largest banking group.

The money comes from the European Union's budget under European Union's scheme InvestEU, which is aimed at supporting sustainable investment, innovation and job creation in Europe.

The grant is supposed to support lending to some 7,500 entrepreneurs and farmers across Romania. It shall ensure enhanced access to finance for very small entrepreneurs, with a direct impact on job creation and economic development in the served communities.

The InvestEU programme, which builds on the success of the previous Investment Plan for Europe, also known as the "Juncker Plan" over the period 2015-2021, has three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal.

The InvestEU Fund is implemented via various financial partners, particularly the EIB. They will invest in projects using the EU budget guarantee of EUR 26.2 bln to mobilise at least EUR 372 bln in additional investments.

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