First Progress Microfinance agreement in Hungary for micro-enterprises

The European Investment Fund (EIF) and Carion Finanszírozási Centrum Zrt. (CFC) have signed a loan agreement aimed at supporting over 100 micro-enterprises in Hungary.

Progress Microfinance is initiated and funded by the European Commission and managed by the European Investment Fund.

This agreement will allow CFC to provide enhanced access to finance to micro-entrepreneurs, with a strong focus on micro-entrepreneurs in urban areas in Hungary, many of whom face difficulties in accessing credit from traditional banking sources.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact CFC’s branches in Hungary.               

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 205 million of funding from the European Commission and the European Investment Bank. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals.

CFC marks the 73th transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of EUR 146 million under Progress Microfinance have been signed to benefit micro-borrowers. Progress Microfinance agreements have been signed to date with financial intermediaries in 20 EU-Member States including Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, The Netherlands and the UK.

For further information about this initiative please visit: www.ec.europa.eu/epmf

About EIF

The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 8.8bn at end 2014. With investments in over 500 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

More information about EIF is available on www.eif.org.

About Carion Finanszírozási Centrum

Carion Financial Center (CFC) is a private financing company, which plays a leading role in Jeremie microcredit financing in Hungary. CFC is a member of the Carion Group which has almost 21 years history on the Hungarian financial market.

Carion Group also has branches and financial companies in Slovakia, Czech Republic and Romania. CFC has already provided funding for more than 800 businesses since 2011 and with this agreement it will be able to continue giving micro loans to micro-businesses in all over Hungary, targeting borrowers who have difficulties in accessing the traditional credit market and cannot offer third party guarantees.

More information about CFC is available at: www.carionhitel.hu

Press information - EIF, please contact:

David Yormesor, d.yormesor@eif.org