REDI Economic Development and Patria Credit non-bank financial institution (IFN) have signed a local partnership for the funding and inclusion of Romany entrepreneurs, mainly farmers, from small rural communities of Romania, according to a press statement released on Tuesday.
Under this partnership, businesses managed by Roma and local businesses that employ Romany workers will be funded under a programme called "Microfinance knows no ethnicity."
According to a study called "Roma in 10 European countries" conducted by the European Union Agency for Fundamental Rights (FRA) in 2021, only two in five Romanian Roma between the ages of 20 and 64 (41%) are gainfully employed or doing paid work, compared with a national average of 71%.
Employment is much rarer among Romany women, with only 23% of Romany women in Romania aged between 20 and 64 having been employed in 2021, as against 56% of the Romany men in the same age group.
At the same time, every second young Roma in Romania between the ages of 16 and 24 (59%) is unemployed or not in any form of education or training. Nationwide, the percentage is 15% (in 2020).
One in four Romanian Roma over the age of 16 (23%) felt discriminated against when looking for a job in the last 12 months before the study.
The percentage is one of the lowest in the European Union, where the average is 33%, with a maximum of 81% in Portugal. On average, the number of Romanian Roma facing negative discrimination when looking for a job has doubled from 10% in 2016.
The unsecured loans that can be accessed by agricultural producers and small Romany entrepreneurs under the Patria Credit programme are capped at RON 120,000 are granted for a period of up to five years, having a flexible repayment schedule in equal, seasonal or customised installments, with the possibility of using investment money for funding current activity and mixed-use projects.
Moreover, Patria Credit will employ a representative of Romany ethnicity to facilitate and develop the collaborative relationship with Romany entrepreneurs or those who employ Roma.
REDI Economic Development's mission is to enhance access to finance for Roma entrepreneurs and entrepreneurs active in Roma communities in Romania, Bulgaria, North Macedonia and Serbia. Founded in Luxembourg in 2019, REDI Economic Development SA is the first investment vehicle with a specific focus on Romany entrepreneurs.
Patria Credit IFN SA is a non-bank financial institution that supports the efforts of small farmers and entrepreneurs.
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