EFSE provides EUR 7 M subordinated loan to Patria Bank to support MSMEs in Romania


Get real time updates directly on you device, subscribe now.

The European Fund for Southeast Europe (EFSE), an impact investment fund focusing on fostering economic prosperity in Southeast Europe and the Eastern Neighbourhood Region, has granted a EUR 7 million Basel III-compliant Tier 2 Capital subordinated loan to Patria Bank. The loan is part of the EFSE crisis response package for financing micro, small and medium enterprises (MSMEs) in critical agri-related industries affected by the Russia-Ukraine war. The loan will support the bank to provide long term financing to MSMEs and contribute to increase local production and food security as well as business resilience and inclusiveness.

Patria Bank has a strong focus on serving MSMEs and agribusinesses. This loan investment will contribute to strengthening the bank’s capitalization, while increasing its capacities to help MSMEs sustain their operations and employment by providing liquidity to withstand the economic spillover effects of the on-going Russia-Ukraine war. This will not only boost the availability of long-term financing that meets the needs of MSMEs across the country including those engaged in agri-related industries but will also enable EFSE to pursue its mission of expanding access to finance for underserved clients in the region as a means to foster resilience, prosperity and growth.

EFSE Board Chairperson Klaus Müller said: “We are excited to embark on this new partnership with Patria Bank as they have a keen focus on supporting MSMEs engaged in critical agri-related industries that have been exposed to the many economic, social and security challenges triggered by the Russia-Ukraine war. We strongly believe this new Basel-III compliant Tier 2 instrument will strengthen and optimize the overall capital structure of the bank – promoting resilient growth within the bank and contributing to wider food security in the region.”

Patria Bank Chairman Horia Manda stated: “We are glad to announce this new project with EFSE, a strategic partner for Patria Bank Group, with whom we share a common goal: to support MSMEs and agribusiness to further develop their businesses and overcome the challenges generated by the current economic environment. At Patria Group we believe that entrepreneurship is the engine of economic growth and the strong partnership with EFSE allows us to support MSMEs and put Romania on the map of areas with maximum development and investment potential.”

The facility contributes towards the achievement of several of the United Nations Sustainable Development Goals, including SDG 2 (Zero Hunger), SDG 8 (Economic Growth) and SDG 9 (Industry Innovation and Infrastructure). The investment is expected to enable the provision of more than 90 loans to MSMEs and support over 900 jobs.

DONATE: Support our work
In an ever changing and challenging world, the media is constantly struggling to resist. Romania Journal makes no exception. We’ve been informing you, our readers, for almost 10 years, as extensively as we can, but, as we reject any state funding and private advertising is scarce, we need your help to keep on going.
So, if you enjoy our work, you can contribute to endorse the Romania Journal team. Any amount is welcome, no strings attached. Choose to join with one of the following options:
Donate with PayPal
Donate by Bank Wire
Black Zonure SRL
UniCredit Bank. Swift: BACXROBU
RON: RO84 BACX 0000 0022 3589 1000
EURO: RO57 BACX 0000 0022 3589 1001
USD: RO30 BACX 0000 0022 3589 1002

Leave A Reply

Your email address will not be published.