CASE STUDY 1 Romanian Micro Credit Scheme (RMCS) Partners involved • Founders: European Union Romanian Government through Romanian Ministry of 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. Level 1 Fund Manager EBRD PLIs MFIs ; Micro Level 2 TA – RMCS - experts, Credit Banks consulting firms Beneficiaries TA – Project – experts and Micro Enterprises and Start - Ups 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 PLIs Founders Fund Manager MFIs ; Micro EU and R Gov. EBRD Credit Banks Activities / Responsibilities: Activities / Responsibilities: • • Negotiation with FM the Scheme’s Design TOR for PLIs selection administration contract • Assess PLS capacity to implement • Disbursement of MF funds to the MC Scheme (Due diligence) Found Manager • Negotiate the Contracts with PLIs • Supervise the disbursement of the • Disbursement the funds to PLIs TA funds • Disbursement of TA funds • Design the Exit route • Monitor the PLIs activities • Monitor and evaluate the scheme’s • Report to Founders implementation
MC Scheme Operations- Level 2 PLS s Beneficiaries MFIs ; Micro Micro Enterprises Credit Banks and Start - Ups Activities/ Responsibilities: Activities/ Responsibilities: • Design Financial products for • Prepare the loan application targeted Beneficiaries • Implement the project • Promote the MC Scheme • Repay the loan and interest • Extend Micro loans to final • Apply and attend to the TA/support Beneficiaries program • Monitor the Beneficiaries • Collect the Micro loans – repayments • Report to Fund manager • Request and attend the TA activities
Project’s Technical Assistance for RMC Scheme Activities/ Responsibilities: Founders • Support R Gov.on Scheme’s Level 1 administration EU and R Gov. • Design the RMCS Exit route Level 2 • 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 • PLSs Assess the needs, design and deliver the TA and Networking programs/ events MFIs ; Micro • Assist 200 potential beneficiaries in Credit Banks BP preparation and loan application Beneficiaries TA – Project – experts and Micro Enterprises networking activities and Start - Ups
Key on-lending results achieved as of 30 June 2012 8,340 No. of loans issued EUR 27,440,132 Volume of loans issued Average size of loans issued EUR 3,290 3.8% Loans to start-ups (% of all loans disbursed) EUR 24,626,646 Micro loans (< 10,000 Euro) disbursed EUR 2,813,487 Small loans (10,001 Euro to 25,000/50,000 Euro) disbursed Loans disbursed to start-up MSEs (MSEs operating EUR 1,032,018 for up to 12 months). 3,639 Number of loans outstanding EUR 5,468,594 Volume of loans outstanding Average size of loans outstanding EUR 1,503
Formal and Informal Partnerships Formal Founders Partnerships: Contracts EU and R Gov. Fund Manager Informal EBRD Partnerships: Agreements PLIs MFIs ; Micro TA – RMCS - experts, Credit Banks consulting firms Beneficiaries TA – Project – experts and Micro Enterprises and Start - Ups networking activities
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