The European Investment Fund (EIF) signed a loan agreement worth 5 million euros with Patria Bank, a Romanian lender specialized in financing small and medium-sized entrepreneurs with limited access to financing, according to a press release. The transaction supported by Invest EU will contribute to strengthening Patria Bank’s capital position, thus facilitating its continued growth and development, with the ultimate goal of improving access to financing for micro-entrepreneurs in rural and small urban areas of Romania. This is the first EIF transaction signed under the InvestEU capacity building investment product.

“In difficult times, often the smallest players in the economy struggle the most. This new agreement between Patria Bank and EIF builds on our excellent long-term cooperation that began more than 10 years ago. To date, more than 6,500 low-income customers who typically struggle to obtain traditional loans have been able to access financing thanks to our joint support. The new subordinated loan backed by InvestEU will boost Patria Bank’s institutional capabilities and support the bank in its mission to facilitate financial and social inclusion in Romania,” said Marjut Falkstedt, CEO of FEI.

“We are happy to expand our collaboration with EIF, which will continue to support us in helping our customers and continue our mission to make it easier for as many local entrepreneurs as possible to access banking and financial services. Looking at our long-term partnership with the EIF, we strongly believe that the portfolio of guarantee products is a real support for all micro-enterprises (through our EASI product we have provided more than 6,500 loans) and with this financial instrument we will continue to play a role active on the local market and to contribute to the stability of Romania’s economy,” added Burak Yildiran, Director General of Patria Bank.

EIF is part of the European Investment Bank Group. It supports small businesses in Europe by improving their access to finance through a wide range of selected financial intermediaries such as banks, guarantee and leasing companies, microcredit providers and private equity funds. The EIF designs and provides equity and debt financing instruments that advance the EU’s objectives in support of entrepreneurship, economic growth, innovation, research and development, the green and digital transition and employment.