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Tuesday, May 24, 2005

12.4 million EUR for micro and small businesses

Entrepreneurs in Romania will have access to more finance following an EUR 12.4 million loan to ProCredit Bank Romania S.A., the first microfinance bank in Romania. The syndicated loan is extended by the EBRD and TaiwanICDF (International Cooperation and Development Fund, Taiwan), and from commercial lenders Cordiant-International Finance Participation Trust (2004) and Erste Bank der oesterreichischen Sparkassen AG. Through its branches ProCredit Bank will use the loan to on-lend to local entrepreneurs across the country wishing to expand their businesses.

ProCredit Bank Romania, formerly known as MIRO Bank, was established in 2002 and changed its name two years later to better convey its integration into the worldwide ProCredit Bank network. It is owned by the EBRD, Commerzbank AG, Deutsche Investitions-und-Entwicklungsgesellschaft, the International Finance Corporation, Internationale Projekt Consult GmbH and ProCredit Holding AG. ProCredit Bank Romania received technical assistance funds from the US Government via the US/EBRD SME Financing Facility for institution building and training loan officers.

ProCredit Bank Romania provides micro loans for up to EUR 10,000 (or the equivalent in Romanian lei or US dollars) with a maturity of up to 24 months. Small loans of up to EUR 250,000 (or the equivalent in lei or USD) are made with a maturity of up to 60 months. All loans are provided on a commercial basis. Since the beginning of 2005 alone, ProCredit Bank has disbursed more than 5,000 business loans for over EUR 25 million, and the average outstanding loan amount is below EUR 5,000.

For more details, check out the MiroBank website.

Posted by Mihai : 5/24/2005 11:16:00 am