International Finance Corporation (IFC) said it is providing $16 million (14.5 million euro) to Romania’s BT Mic to improve access to finance for micro and small enterprises (MSEs) and toward financial inclusion of women-owned small businesses in the country.
The financing to BT Mic is designed to address the challenges that MSEs face in access to finance in Romania, IFC, a member of the World Bank Group, said in a press release on Thursday.
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. The availability of financing for these small entrepreneurs is crucial for their sustainability and capacity to create jobs and contribute to the economy,” BT Mic CEO Cristina Sindile said.
According to IFC, the non-banking financial institutions are critical in addressing the scarcity of MSE funding, which is less than 2% of the GDP in Romania.
“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. We expect this financing to help boost financial intermediation for women entrepreneurs,” IFC Regional Industry Head, Financial Institutions Group for Europe and Central Asia, Vittorio Di Bello said.
BT Mic, part of Romania’s 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.