The Study on the Social Impact of Microfinancing on the Development of Rural Communities in Romania will be extended by Patria Credit with support from the Council of Europe Development Bank (CEB), through the European technical assistance programme InvestEU Advisory Hub.
The Study on the Social Impact of Microfinancing on the Development of Rural Communities in Romania will be extended by Patria Credit with support from the Council of Europe Development Bank (CEB), through the European technical assistance programme InvestEU Advisory Hub.
Patria Credit, a key player in Romania’s microfinancing sector, receives support amounting to EUR 49 450, from the Council of Europe Development Bank (CEB) to expand its study on the socio-economic impact of microfinancing.
The first edition of the innovative study, conducted in 2022, outlined the significant economic and social effects of microfinance for rural and small urban communities in Romania. The study focused on three pilot communities where Patria Credit has been active for over a decade: Matca and Scărișoara (rural areas in Galați and Olt counties) and Târgu Frumos (a small town in Iași County). These results underline the significant potential of microloans to support rural entrepreneurs, improving living conditions, and stimulating local economic development.
In the new edition of the study, conducted in 2025, Patria Credit aims to expand its initial research and test a set of social impact indicators developed following the first study. The primary goal will be to evaluate these indicators on a national sample of Patria Credit clients, adjusting them as necessary in accordance with the European Commission’s recommendations.
The study will assess the social impact of microloans granted in rural communities, focusing on:
• Financial and social inclusion
• Income growth and quality of life improvement
• Poverty reduction
The study will analyze the long-term improvements in well-being at two levels: at the household level and at the community level, identifying the following:
• Changes in the economic activities carried out by households after receiving the loans
• Changes in household well-being (income, expenses, durable goods, housing quality, etc.)
• Community-level changes resulting from the access to microloans
• Changes in the financial inclusion of clients
Raluca Andreica, CEO of Patria Credit, stated:
“This study not only highlights the significant role of microfinancing in promoting financial inclusion but also aligns with European objectives to promote the social economy and sustainable rural development. The data is clear – microfinancing is a key tool in increasing economic opportunities, supporting communities, and creating sustainable social change.”
The study also contributes to broader European efforts to measure the social impact of microfinance, in line with the European Pillar of Social Rights and the European Action Plan for the Social Economy. Given the focus on financing for improving sustainability indicators, as well as the digital transition, Patria Credit continues its commitment to adopting responsible practices in its operations, thereby increasing the social value of its activities.
Tanja Faller, Director of CEB’s Technical Assessment and Monitoring Directorate, from the Council of Europe Development Bank (CEB) stated:
“The Council of Europe Development Bank (CEB), through this study, supports Patria Credit’s efforts to promote inclusive financing in Romania to the benefit of small business and rural communities. The CEB is dedicated to strengthening these initiatives, which are essential for stimulating sustainable economic growth and promoting social cohesion in Europe.”
The study will be conducted from January to July 2025 under the guidance and coordination of Claudia Petrescu, scientific researcher at the Institute for Quality of Life Research, and Associate Professor Dr. Roxana Florența Săvescu. The results are expected to be available in the second half of 2025.