MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $1.3m to Microfinance Institution Microinvest of Moldova

The European Fund for Southeast Europe (EFSE), a Luxembourg-based, government-backed microfinance investor that aims to foster regional development in southeastern Europe and parts of central Asia, recently announced that it has provided a loan of EUR 1 million (USD 1.3 million) to Microinvest, a microfinance institution (MFI) founded by the Soros Foundation in Moldova, to support micro- and small enterprises (MSEs) [1]. The purpose of the loan has not been released.

As of March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). For the year 2011, Microinvest reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 17.9 million, total assets of USD 25.9 million and approximately 5,100 active borrowers. Microinvest does not accept deposits.

By Megan McGowan, Research Associate

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 723 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies microfinance investment vehicles.

About Microinvest

Founded in 2003 by Soros Foundation Moldova, Microinvest is a microfinance institution in Moldova. For the year 2011, Microinvest reported to the US-based nonprofit Microfinance Information Exchange (MIX) a gross loan portfolio of USD 17.9 million, total assets of USD 25.9 million and approximately 5,100 active borrowers. Microinvest does not accept deposits.

Sources and Additional Resources

[1] Direct source information sent to MicroCapital from Finance in Motion

Press Release, European Fund for Southeast Europe: EFSE Greenlights EUR 5 million Loan to Inecobank to Support MSE Credit Businesses in Armenia”, September 12, 2013, http://efse.lu/Press-releases—Details—2013-09-12-EFSE-greenlights-EUR-5-million-loan-to-Inecobank-to-support-MSE-credit-business-in-Armenia——_nav.52_siteid.134_entryid.499_dir._likecms.html

MicroCapital.org Article, July 13, 2013, “MICROCAPITAL BRIEF: EFSE Loans $33m to UniCredit for Business, Home Loans in Serbia,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeastern-europe-efse-loans-33m-to-serbias-unicredit-bank-for-microlending-and-home-improvement/

MicroCapital.org Article, June 17,2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $9.3m to Mikrofin Banja Luka, MF Banka of Bosnia and Herzegovina for Micro- and Small Enterprise (MSE) in Rural Areas,”https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-9-3m-to-mikrofin-banja-luka-mf-banka-of-bosnia-and-herzegovina-for-micro-and-small-enterprise-mse-in-rural-areas/

MicroCapital Article, June 17, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE), European Bank for Reconstruction and Development (EBRD) Loan $4m to Mikrokreditna Fondacija Mi-Bospo of Bosnia and Herzegovina,”https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-european-bank-for-reconstruction-and-development-ebrd-loan-4m-to-mikrokreditna-fondacija-mi-bospo-of-bosnia-and-herzegovina/

MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

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