Bucharest, Romania, January 30, 2020 —IFC, a member of the World Bank Group, is providing $16 million in financing to BT Mic to improve access to finance for micro and small enterprises (MSEs) and toward financial inclusion of women-owned small businesses in Romania.
The non-banking financial institutions are critical in addressing the scarcity of MSE funding, which is less than 2% of the GDP in Romania. IFC’s financing to BT Mic is designed to address the challenges that MSEs face in access to finance in Romania. Half of the IFC financing is earmarked for women-owned enterprises, seeking to empower them to play a larger role in the economy.
“IFC’s support will enable BT Mic to provide much-needed financing for start-ups and small businesses in Romania,” said Cristina Sindile, BT Mic’s CEO. “The availability of financing for these small entrepreneurs is crucial for their sustainability and capacity to create jobs and contribute to the economy.”
“Increasing the access to financing for specific segments such as the micro enterprises is an important mechanism to support the development of the private sector especially in less developed regions in Romania” said Vittorio Di Bello , IFC Regional Industry Head, Financial Institutions Group for Europe and Central Asia. “We expect this financing to help boost financial intermediation for women entrepreneurs.”
BT Mic is a subsidiary of Banca Transilvania S.A., an IFC client since 2004, when IFC first extended a loan to the bank for mortgage on-lending. Since then, IFC has invested in the bank through a series of senior, subordinated, and convertible debt instruments.
About BT Mic
BT Mic, part of Banca Transilvania Financial Group (BT), is dedicated to the financing of very small businesses, including start-ups, complementing the role of BT in supporting Romanian entrepreneurs. It targets entrepreneurs with an annual turnover up to RON 1 million, regardless of the field of activity and the form of organization – commercial companies, authorized individuals, enterprises/family associations, sole proprietorships, self-employed persons, or persons who practice economic activities. To date, more than 10,000 micro-companies are supported by BT Mic. For more information about BT Mic, please visit: www.btmic.ro
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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