MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers Implementing $27m Western Balkans “Women in Business” Financing Program

The European Bank for Reconstruction and Development (EBRD), a multilateral funder, is considering implementing a Western Balkans “Women in Business Financing Program” (WiB Program) in Albania, Bosnia and Herzegovina, The Former Yugoslav Republic of Macedonia, Kosovo, Montenegro and Serbia. The objective of the WiB Program would be promoting the participation of women in business by increasing their access to funding and technical assistance, in line with EBRD’s Strategic Gender and Small Business Initiatives.

If implemented, the WiB program would include a EUR 20 million (USD 27.4 million) financing element provided by the governments of Sweden and Luxembourg as well as EBRD’s Shareholder’s Special Fund. This funding would be made available to borrowers through “participating financial institutions”[1] including non-bank microfinance institutions (MFIs), commercial banks and leasing companies. The WiB Program would also include a business support and advisory element for micro-, small and medium-sized enterprises (MSMEs) managed by women. If implemented, the program is expected to be formally launched over the course of 2014 and run for four years.

In anticipation program approval, the Swedish International Development Agency (SIDA) has made available SEK 33 million (USD 5 million) for capacity building within local financial institutions that would participate in the WiB Program, and the government of Luxembourg has already pledged additional funding totaling EUR 1.5 million (USD 2 million).

The London-based European Bank for Reconstruction and Development (EBRD) provides loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs) in Eastern Europe, Central Asia and North Africa. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By Alíz Crowley, Research Associate

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

About the Swedish International Development Agency (SIDA)

The Swedish International Development Agency (SIDA) is a government organization that operates under the auspices of the Swedish Foreign Ministry. SIDA administers approximately half of Sweden’s budget for development aid. As of 2014, SIDA manages approximately SEK 19.2 billion (USD 2.9 billion), and a further SEK 10.6 billion (USD 1.6 billion) is channeled through SIDA to multilateral institutions. SIDA is headquartered in Stockholm and cooperates with other Swedish government agencies, NGOs and international organizations such as the United Nations, the European Union and the US-based World Bank Group.

Sources and Additional Resources

[1] EBRD, May 2014, WB Women in Business Financing Programme

[2] EBRD, May 2014, EBRD, Sweden and Luxembourg Expand Support to Women Entrepreneurs in the Western Balkans

MicroCapital, May 18, 2014, European Bank for Reconstruction and Development (EBRD) Considers Syndicating $25m Investment In Minsk Transit Bank (MTB) of Belarus for On-Lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

MicroCapital, May 13, 2014, Sweden, European Bank for Reconstruction and Development (EBRD) Facilitate Energy-Efficiency Advice for 100 Small, Medium-sized Enterprises (SMEs) in Moldova

MicroCapital, May 6, 2014, European Bank for Reconstruction and Development (EBRD) Considers $277m Investment for Financial Institutions in Western Balkans

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

MicroCapital Universe Profile: Swedish International Development Agency (SIDA)

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