Investment & Fund Management

The European Investment Fund (EIF) invested EUR 1 million into PerMicro, the first Italian financial institution specialized in micro-credit, acquiring 20.4% of their shares. This investment is expected to attract additional resources, totaling EUR 3 million, to support micro-businesses and micro-entrepreneurs in Italy. This agreement marks EIF’s first signature under the European Parliament Preparatory Action (EPPA), a EUR 4 million pilot program aimed at fostering sustainable microfinance development across the EU. It also represents EIF’s inaugural direct equity investment into a non-bank Microfinance Institution (MFI).

With the funding from EIF, PerMicro will provide micro-loans of up to EUR 25,000 to micro-entrepreneurs who are either starting new businesses or developing existing ones, including those pursuing self-employment. This initiative is particularly significant for individuals who have historically faced challenges accessing traditional banking services. The partnership aims to enhance financial access for micro-entrepreneurs in Italy, especially targeting immigrant communities and those with limited financial resources.

PerMicro, established in 2007, focuses on developing microfinance in Italy and collaborates with NGOs and other social organizations to assist individuals who struggle to access conventional financial systems. By the end of 2010, PerMicro had granted 995 micro-loans totaling EUR 5 million, demonstrating its commitment to supporting economic growth and social improvement through microfinance. The EIF's investment is expected to further bolster PerMicro's capacity to provide essential financial services to underserved populations, thereby contributing to broader economic development goals in the region.