The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle based in Luxembourg, recently disbursed approximately EUR 13 million (USD 17 million) to two Romanian financial institutions. Banca Transilvania S.A. Romania, a privately-owned Romanian bank, received EUR 5 million (USD 6.6 million) in loans. EFSE disbursed EUR 8 million (USD 10.5 million) in loans to Agricover Credit IFN S.A., an agriculture-based financial services company based in Romania. IFN is a Romanian acronym for non-banking financial institution.
As of March 2012, EFSE reported an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of June 2012, Banca Transilvania reported total assets of RON 29 billion (USD 8.5 billion). Financial information for Agricover Credit is unavailable.
By Lena Phillips, Research Associate
About Banca Transilvania
Banca Transilvania is a privately-owned bank in Romania established in 1994. Banca Transilvania is a member of the Banca Transilvania Financial Group, which offers financial services including leasing, securities and asset management. The bank itself has four divisions: retail, small and medium-sized enterprise (SME), corporate and medical. It has approximately 6,000 employees and 400 branches and agencies across the country. In June 2012, Banca Transilvania reported total assets of RON 29 billion (USD 8.5 billion).
About The European Fund for Southeast Europe (EFSE)
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
Data provided to MicroCapital by EFSE.
MicroCapital.org Article, 1 May 2012: “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $453k to Opportunity MicroCredit Romania, http://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-453k-to-opportunity-microcredit-romania/#more-20989
MicroCapital.org Article, 1 May 2012: “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Lends $16m to Agricover Credit to Increase Funds for Farmers in Romania”, http://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-lends-16m-to-agricover-credit-to-increase-funds-for-farmers-in-romania/#more-18563
MicroCapital.org Article, 21 March 2012: “MICROCAPITAL BRIEF: European Investment Fund, Banca Transilvania Sign $10m Loan Agreement for Microfinance in Romania”, http://www.microcapital.org/microcapital-brief-european-investment-fund-banca-transilvania-sign-10m-loan-agreement-for-microfinance-in-romania/#more-17887
MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE), http://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: Banca Transilvania, http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banca+Transilvania
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