Partners involved Founders: European Union Romanian Government - - PowerPoint PPT Presentation

CASE STUDY 1 Romanian Micro Credit Scheme (RMCS) Partners involved

• Founders:

European Union Romanian Government through Romanian Ministry

• f Regional Development and Tourism (RMDT)

European Bank for Reconstruction and Development (EBRD) ( leverage funds)

• Beneficiaries: MSMEs – Micro enterprises and

Start Ups

• Implementers: MDT– Management Authority

EBRD – Fund manager PLS -Partner lending Institutions

• Technical Assistance: EU funded Project_ TA to assist SMEs

development in Romania

Objective

The Romania Micro Credit Facility (RMCF) aims to support the Romanian micro and small enterprises (MSEs), including start-up MSEs, by improving their access to finance The RMCF assists the MSE sector by supporting the creation of new job opportunities, sustaining existing workplaces and diversifying economic production

RMC Scheme Disbursement of Funds and TA

Founders EU and R Gov. Fund Manager EBRD PLIs MFIs ; Micro Credit Banks Beneficiaries Micro Enterprises and Start - Ups Level 1 Level 2 TA – RMCS - experts, consulting firms TA – Project – experts and networking activities

RMCS budget

EU/RG – Contribution Total 18,6 mil Euro

• 2,5 Mil. Euro – Technical Assistance
• 3, 0 Mil. Euro – Risk fund
• 12,52 Mil. Euro – Micro credit fund for MFIs

EBRD – Contribution (matching funds)

RMC Scheme Operations- Level 1

Activities / Responsibilities:

• Negotiation with FM the Scheme’s

administration contract

• Disbursement of MF funds to

Found Manager

• Supervise the disbursement of the

TA funds

• Design the Exit route
• Monitor and evaluate the scheme’s

implementation

Activities / Responsibilities:

• Design TOR for PLIs selection
• Assess PLS capacity to implement

the MC Scheme (Due diligence)

• Negotiate the Contracts with PLIs
• Disbursement the funds to PLIs
• Disbursement of TA funds
• Monitor the PLIs activities
• Report to Founders

Founders EU and R Gov. Fund Manager EBRD PLIs MFIs ; Micro Credit Banks

MC Scheme Operations- Level 2

Beneficiaries Micro Enterprises and Start - Ups PLSs MFIs ; Micro Credit Banks

Activities/ Responsibilities:

• Design Financial products for

targeted Beneficiaries

• Promote the MC Scheme
• Extend Micro loans to final

Beneficiaries

• Monitor the Beneficiaries
• Collect the Micro loans –

repayments

• Report to Fund manager
• Request and attend the TA activities

Activities/ Responsibilities:

• Prepare the loan application
• Implement the project
• Repay the loan and interest
• Apply and attend to the TA/support

program

Project’s Technical Assistance for RMC Scheme

Founders EU and R Gov. PLSs MFIs ; Micro Credit Banks Beneficiaries Micro Enterprises and Start - Ups Level 1 Level 2 TA – Project – experts and networking activities

Activities/ Responsibilities:

• Support R Gov.on Scheme’s

administration

• Design the RMCS Exit route
• Design the Monitor and evaluation

system of the RMCS

• Assist the PLIs – MFIs in the design

Financial products for targeted Beneficiaries

• Promote the MC Scheme
• Assist PLIs- MFIs to report to Fund

manager

• Assess the needs, design and deliver

the TA and Networking programs/ events

• Assist 200 potential beneficiaries in

BP preparation and loan application

Key on-lending results achieved as of 30 June 2012

• No. of loans issued

8,340

Volume of loans issued

EUR 27,440,132

Average size of loans issued

EUR 3,290

Loans to start-ups (% of all loans disbursed)

3.8%

Micro loans (< 10,000 Euro) disbursed

EUR 24,626,646

Small loans (10,001 Euro to 25,000/50,000 Euro) disbursed

EUR 2,813,487

Loans disbursed to start-up MSEs (MSEs operating for up to 12 months).

EUR 1,032,018

Number of loans outstanding

3,639

Volume of loans outstanding

EUR 5,468,594

Average size of loans outstanding

EUR 1,503

Formal and Informal Partnerships

Founders EU and R Gov. Fund Manager EBRD PLIs MFIs ; Micro Credit Banks Beneficiaries Micro Enterprises and Start - Ups Formal Partnerships: Contracts Informal Partnerships: Agreements TA – RMCS - experts, consulting firms TA – Project – experts and networking activities