EFSE grants a loan amounting to Euro 7 million to Patria Credit Romania

Frankfurt am Main and Bucharest, 28 March 2011 – European Fund for Southeast Europe ("EFSE" or the "Fund") grants a new loan of EUR 7 million to Patria Credit IFN SA. ("Patria Credit"). Patria Credit shall use the loan to finance microenterprises in rural areas of Romania, thus mobilizing the capital for a segment of the Romanian economy with low coverage in terms of services provided by local banks. EFSE will provide a portion of the loan in local currency, which will allow the company Patria Credit to meet the growing demand for medium-term financing in Lei.

Patria Credit is located in the capital city of Romania, Bucharest, being the largest non-banking financial institution in Romania addressing the very small business sector, SMEs, in both urban and rural areas.

“We are glad to sign the loan agreement with Patria Credit. This investment is consistent with the EFSE strategy to support well-managed institutions that are committed to helping microenterprises" said Dr. Klaus Glaubitt, Chairman of the Board of Directors of EFSE. "By extending and developing the financial services in Romania to an area facing high needs, the investment will allow access to loans for over 1,700 microenterprises and small enterprises in rural areas in Romania. Moreover, by granting the loan in local currency Patria Credit shall be able to reduce foreign exchange risk for its clients.”

 „The loan granted to Patria Credit by EFSE will allow our company to continue the strategic plans for funding the clients with limited access to financial services from the geographic and financial point of view. We appreciate the role of EFSE in encouraging and supporting microenterprises and agro producers to develop and achieve their potential. Our development over the past 12 months has shown that these market segments are dynamic and that they are more and more turning to loans in order to cover their financing needs.’’ stated Bogdan Merfea, General Manager of Patria Credit.

The current loan is the second loan granted by EFSE to Patria Credit, following the first loan granted in 2006 amounting to Euro 2 million. Up to the present date, the Fund has provided 100 million Euros for the financial sector in Romania for granting loans to small and very small enterprises. Moreover, to help expand lending to microenterprises and small enterprises, EFSE granted approximately 0.5 million euro as technical assistance for the Romanian partner institutions.

About the European Fund for Southeast Europe (EFSE)

The European Fund for Southeast Europe (EFSE) aims at supporting economic development and prosperity in Southeast Europe and in Caucasus region. To this end, EFSE provides long term funding instruments to local financial institutions, enabling the granting of business loans primarily to microenterprises and small enterprises, as well as loans for procurement and private homes improvement works for individuals. The investment activities of EFSE are supported by EFSE Development Facility, which provides technical assistance, consultancy and training services for the partner institutions. EFSE was established on 15 December 2005 by the combination of four multi-sponsor programs managed by KfW Entwicklungsbank (German Development Bank), as part of the first public-private partnership initiative to finance development. The first four countries financed by the Fund were Bosnia and Herzegovina, Serbia, Kosovo, Montenegro. Over the next five years they were joined by Albania, Armenia, Azerbaijan, Bulgaria, FYR Macedonia, Georgia, Moldavia, Romania, Belarus and Ukraine. The initial capital invested in the Fund amounted to approximately Euro 66 million while EFSE currently has investments in 65 local financial institutions, amounting to Euro 664.4 million (31 December 2010). The capital is provided by sponsors from the public sector, by international financial institutions and by private institutional investors. EFSE sponsors and investors include the German Federal Ministry for Economic Cooperation and Development, the European Commission, the governments of Austria, Switzerland, Denmark and Albania, KfW, IFC, FMO, the European Bank for Reconstruction and Development, the European Investment Bank, Oesterreichische Entwicklungsbank Sal . Oppenheim and Deutsche Bank. The Fund is privately managed by Oppenheim Asset Management Services and Finance in Motion, acting as manager and advisor to the Fund.

For further information, please visit: http://www.efse.lu  

About Patria Credit

Patria Credit (the former CAPA Finance) is the largest microfinance non-banking financial institution, and provides loans to small and very small enterprises. At the end of 2010, the company was serving over 10,000 clients through a network including 16 branches in major cities and 21 branches in rural areas. The total value of company assets amounts to EUR 40 million (on 31 December 2010). The company's major shareholders are the Romanian American Enterprise Fund (RAEF) and the Balkan Accession Fund (BAF).

For further information, please visit www.patriacredit.ro.


 
Media contact EFSE

Samir Djikic                                                      
Communications Manager                                 
Tel: +49 (0)69/977 876 50-26                        
E-mail: press@efse.lu


 
Media contact Patria Credit

Camelia Raileanu
Marketing Manager
Tel:  +40 (0)21 304 00 72
E-mail camelia_raileanu@patrialoan.ro