2nd STAKEHOLDER GROUP MEETING held in Romania

OIR PECU BI, as a lead partner in the MICROFUTURE project "Future Proof Microfinance for Social Inclusion," funded by Interreg Europe, has successfully organized The Second Meeting of Stakeholders in Romania. The event took place on February 27, 2024, from 09:30 to 14:00, at the Grand Hotel Continental in Bucharest, and gathered significant representatives from the microfinance sector and social economy.

This meeting was a key platform for dialogue and collaboration between different entities involved in the development of the microfinance sector and social economy. Participants included representatives from the Ministry of Labor and Social Solidarity, the National Credit Guarantee Fund for Small and Medium Enterprises (FNGCIMM SA-IFN), Microfinance Association, BCR Social Finance, AFIN, Structural Funds, ASSOC, the Faculty of Sociology and Social Assistance, DGASPC S6, as well as other organizations, NGOs, and private entities.

The event's agenda included presentations and discussions such as:

• Presentation of the current status of the MICROFUTURE project
• Presentation Italian Microcredit model (Learning from partners)
• Presentation of the proposed Collateral-type financial instrument by FNGCIMM, Mihaela Constantinescu
• Group discussions moderated by Roxana Lupu and Mihaela Vasiloi from Ashoka Romania
• Presentation of the summary of the Territorial Analysis for Romania in the microfinance and social economy sector
• Principles of collaboration through innovation presented by Ashoka Romania

A particular highlight of the meeting was the presentation made by Mihaela Constantinescu, representing FNGCIMM, regarding the proposal of a Collateral-type financial instrument for Romania. This proposal represents a novelty on the Romanian market, introducing a mixed financing model, combining grants and loans. The specificity of this instrument lies in the fact that the grants are offered through the Education and Employment Programme (PEO), which adds significant added value for the final beneficiaries.

The importance of Mihaela Constantinescu's presentation lies in the relevance and applicability of this financial instrument for social enterprises in Romania. The proposal aims to create a more accessible and sustained framework for microfinance, with the potential to stimulate economic growth and social inclusion at the national level. An integrated approach to financing and support for social enterprises, providing them access to the necessary capital for their long-term development and sustainability.

The session moderated by representatives of Ashoka Romania, Roxana Lupu, and Mihaela Vasilori, had as main topic the discussion of the introduction of the Financial Instrument for social enterprises in Romania, following the model proposed by FNGCIMM.

This initiative sparked considerable interest among participants, opening the way for a series of constructive and detailed debates on the viability, necessity, and ways to improve the proposal.

The meeting concluded with a conclusions session, where the directions for action and collaboration for the following period were outlined. Discussions focused on the need to strengthen multi-stakeholder partnerships and on identifying concrete ways through which microfinance can more effectively meet the needs of the social economy.

In conclusion, the event was a valuable forum for exchanging ideas and strategies on  improving access to finance for social enterprises in Romania. It highlighted the necessity for legislative changes, a mindset shift among social enterprises and financial institutions, and the importance of continuous consultancy and training to successfully shape the complex financial landscape of the social economy.

By organizing this meeting within the MICROFUTURE project, OIR PECU BI and its partners reaffirm their commitment to the sustainable development of the microfinance sector and social economy in Romania.