Good news ahead of the New Year. Following the meeting of the European Code of Good Conduct for Microcredit Provision Steering Group held on December 10, 2020, it was recognized that Mikro Kapital Romania meets the requirements of the Code.
As a result, Mikro Kapital achieved the full score necessary for compliance with the European Code of Good Conduct for Microcredit Provision (“the Code”) in relation to its portfolio of microcredits for enterprises. The decision was made by the Steering Group for Code-related matters, based on the recommendation of the independent Code evaluator, Microfinanza Rating.
What the European Code of Good Conduct for Microcredit Provision Is
The European Code of Good Conduct for Microcredit Provision provides a set of standards regarding management, governance, risk management, reporting, and relationships with consumers and investors that are common across the microcredit sector in the European Union. These standards benefit consumers, investors, funders, owners, regulatory authorities, and partner organizations.
The Code includes a guide of best practices, allowing the sector to meet challenges such as access to long-term financing, maintaining and improving service quality, and progressing toward sustainability.
What the Code Represents for Mikro Kapital
Obtaining the Code certifies Mikro Kapital’s transparency toward clients, investors, funders, authorities, and partners. Mikro Kapital’s mission is to support entrepreneurial activity in regions of Romania with limited access to information, to understand client needs, and to assist them through correct guidance and financing to achieve their full potential. Therefore, the standards provided by the Code contribute to achieving the company’s mission alongside other measures undertaken.
Mikro Kapital Romania has 9 branches in Romania and has granted over 3,500 loans, with a portfolio of more than 2,200 clients. The company provides financing support to both small entrepreneurs and farmers in Romania.