MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $30m to Finansbank of Turkey to Support Micro-, Small, Medium-sized Enterprises (MSMEs)

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently announced that it will disburse a senior loan of EUR 25 million (USD 30 million) to Finansbank, a commercial bank in Turkey that is a subsidiary of the National Bank of Greece Group, a Greek financial conglomerate. The aim of the loan is to fund micro-, small and medium-sized enterprises (MSMEs) in Turkey, with 50 percent of the funding to be dedicated to MSMEs located in the “priority development regions”[1] of the country, which are mainly located in its eastern and south-eastern provinces.

Ms Monika Beck, the chairperson of the board of EFSE, said that “with Finansbank we have gained an important new partner in facilitating access to finance for the EFSE’s target group of micro- and small enterprises in Turkey”[1]. Mr Temel Güzelo?lu, the general manager of Finansbank, added that “this facility is our first transaction with the EFSE. It not only demonstrates the level of trust bestowed upon our bank by the EFSE, but is also an indication of the inspiration Turkey and its MSEs provide at a global scale. […] This agreement […] will enhance our ability to financially support Turkey’s fast growing and very promising micro and small enterprises”[1].

As of June 2013, EFSE had an investment portfolio of EUR 774 million (USD 1 billion). As of September 30, 2014, Finansbank reported total assets of TRY 76 billion (USD 32 billion), total loans and receivables of TRY 49 billion (USD 21 billion), total deposits of TRY 42 billion (USD 18 billion) and a customer base of 5.3 million.

By Alíz Crowley, Research Associate

About Finansbank

Headquartered in Istanbul, Finansbank is a commercial bank that provides a range of financial services in Turkey including consumer banking, small business banking, corporate and commercial banking and private banking. Finansbank is a subsidiary of the National Bank of Greece Group, a Greek financial conglomerate. As of September 30, 2014, Finansbank reported total assets of TRY 76 billion (USD 32 billion), total loans and receivables of TRY 49 billion (USD 21 billion), total deposits of TRY 42 billion (USD 18 billion) and total equity of TRY 8.5 billion (USD 3.6 billion). As at the same date, Finansbank had 666 branches and a customer base of 5.3 million.

About European Fund for Southeast Europe (EFSE)

The European Fund for Southeast Europe (EFSE) was established in 2005 by Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank, with financial support from the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung) and the European Commission of the EU. EFSE seeks to aid 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 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 June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion). As of 2014, 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

[1] Press release sent to MicroCapital by European Fund for Southeast Europe (EFSE)

MicroCapital, December 30, 2014, European Fund for Southeast Europe (EFSE), Green for Growth Fund (GGF) Loan $24.2m to Macedonia-based Halkbank AD Skopje to Support Energy Efficiency; Housing; Micro-, Small Enterprises (MSEs)

MicroCapital, December 19, 2014, European Fund for Southeast Europe (EFSE) Loans $4.2m to Agricultural Cooperative Bank of Armenia (ACBA) Leasing for On-lending to Micro-, Small Enterprises

MicroCapital, October 29, 2014, European Bank for Reconstruction and Development (EBRD), Turkish Government Launch “Finance and Advice to Women in Business” 

MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)

MicroCapital Universe Profile: Finansbank

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