MICROCAPITAL BRIEF: EFSE Loans $16m to Halkbank for Housing, Microenterprise, Small-business Lending in Macedonia

The European Fund for Southeast Europe, a microfinance investment vehicle that was launched by Germany’s KfW Development Bank, announced today that it has issued senior loans totaling EUR 15 million (USD 16 million) to Halkbank AD Skopje, which describes itself as Macedonia’s “first downscaling bank, creating products and services for micro clients.” Two thirds of the funding is earmarked for retail housing loans, and the remainder is slated to provide “long-term” loans to micro- and small enterprises.

Halkbank AD is a subsidiary of Turkish Halk Bank Incorporated, which is controlled by the government of Turkey. As of 2015, Turkish Halk Bank has total assets of TRY 120 billion (USD 36 billion). As of 2014, Halkbank AD reports total assets of MKD 26 billion (USD 440 million). It has 36 branches in the country plus one in Serbia.

As of 2016, EFSE reports investments of EUR 898 million (USD 1 billion) outstanding to its 63 partner lending institutions, including 35 microfinance banks and microcredit organizations. As of 2016, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

Sources and Additional Resources

EFSE Increases Support for Small Business, Housing in Macedonia with Halkbank Loan
http://www.efse.lu/news-events/news/detail/efse-increases-support-for-small-business-housing-in-macedonia-with-halkbank-loan/

Halkbank AD
http://www.halkbank.com.mk/

Turkish Halk Bank
http://www.halkbank.com.tr/

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