Pending government approval, Romania’s Banca Transilvania (BT) Financial Group is slated to acquire 100 percent of the equity in Microinvest, a Moldovan microfinance institution, for an undisclosed price. The MFI is being sold by a group of European and US-based entities, led by the Balkan Financial Sector Equity Fund, according to MicroCapital.org.
Microinvest offers loans with terms of up to 7 years for farming, non-farm enterprises, consumption, cars and housing improvements. The maximum amount for a collateral-free loan is MDL 1 million (USD 56,000). Founded 16 years ago, the institution has 190 employees serving 25,000 clients at 13 branches as of 2020.
On behalf of the largest member of BT Financial Group, BT CEO Omer Tetik said, “This is an opportunity that we want to capitalise on to the benefit of our clients who are in the early stages of their business endeavors. We will do so by combining the business model we employ in Romania through BT Mic with the one used by Microinvest, as well as through increasing synergies with other companies of Banca Transilvania Financial Group from the Republic of Moldova, namely BT Leasing and Victoriabank.”
BT Mic is the member of BT Financial Group that offers microfinance in Romania. It has 10,000 clients as of 2020. Moldova-based BT Leasing has 3,000 clients, mainly small and medium-sized enterprises. Moldova-based Victoriabank has 1,100 employees serving 270,000 business and individual clients at 100 branches.
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