AFIN IFN SA, Romania’s first non-bank financial institution dedicated exclusively to the social economy, will strengthen its capacity to finance social enterprises, cooperatives, and NGOs with support from the European Investment Fund (EIF). Backed by InvestEU, the EIF has provided a subordinated loan of 2.5 million Romanian lei (about €480,000) under a 10-year agreement, reinforcing AFIN’s capital base and enabling it to expand financing for organizations that often face limited access to traditional credit.
The operation is supported through the InvestEU Capacity Building Investment instrument, which helps financial intermediaries enhance access to finance for micro and social entrepreneurs across Europe. EIF Head of Inclusive Finance Cristina Dumitrescu emphasized that the partnership will contribute to building a more inclusive and resilient economy. AFIN IFN CEO Felicia Relenschi noted that the agreement strengthens the institution’s financial resilience and supports its mission of creating sustainable financing solutions tailored to the social economy sector.
Based in Iași, AFIN IFN has been operational since 2023 and has already provided more than 130 loans totaling approximately €2.5 million across Romania. As a certified social enterprise itself, AFIN reinvests 90% of its profits into social purposes and works in partnership with the Social Finance Association and ADV Romania. Its lending is designed to meet the specific needs of NGOs, cooperatives, and social enterprises, helping them grow and sustain their activities.
The EIF, part of the European Investment Bank Group, specializes in guarantees and equity to improve access to finance for SMEs and startups across Europe. Acting as an anchor investor, it mobilizes private capital and supports innovative entrepreneurs. The InvestEU program, which consolidates EU financial instruments under one framework, provides long-term funding by leveraging public and private resources to support strategic priorities such as the European Green Deal and digital transition.
This partnership marks a significant step in strengthening Romania’s social economy ecosystem, ensuring that organizations dedicated to social impact have access to the financing they need to expand their reach and resilience.
