The European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg, recently loaned the equivalent EUR 7 million (USD 9.86 million) to Romanian microfinance institution (MFI) Patria Credit, for on-lending to micro- and small enterprises (MSEs) in rural Romania.
EFSE will lend part of the EUR 7 million in local currency in order to meet the growing demand from MSEs for local-currency financing [1]. The exact amount of the local-currency financing is unavailable. Previously EFSE has loaned EUR 2 million (USD 2.81 million) to Patria Credit and has financed approximately EUR 100 (USD 140 million) for on-lending to MSEs in Romania.
As of 2009, Patria Credit reports to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 54 million, a gross loan portfolio of USD 46 million, approximately 7,800 borrowers, return on assets (ROA) of -2.4 percent and return on equity (ROE) of -7.4 percent.
Managed by Oppenheim Asset Management Services, EFSE reported to MIX that it had 58 active microfinance investments in 2009 with fund assets totaling USD 830 million.
By Medha Ravi, Research Associate
About European Fund for Southeast Europe (EFSE):
Established in 2005, the European Fund for Southeastern 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 is privately managed, with Oppenheim Asset Management Services acting as its fund manager and Finance in Motion GmbH acting as fund advisor. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million (USD 775 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of April 2010.
About Patria Credit:
Patria Credit (formerly CAPA Finance) is a microfinance institution (MFI) that was established in 1996 in Romania. The MFI’s mission is to provide financial services to low-income individuals and micro- and small-scale entrepreneurs. As of 2009, Patria Credit reports to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 54 million, a gross loan portfolio of USD 46 million, approximately 7,800 borrowers, return on assets (ROA) of -2.4 percent and return on equity (ROE) of -7.4 percent.
Source and Resources:
[1] European Fund for Southeast Europe (EFSE) press release, “EFSE provides EUR 7 million loan to Romania’s Patria Credit”, http://www.efse.lu/Press-releases—Details—2011-03-28-EFSE-provides-EUR-7-million-loan-to-Romania—s-Patria-Credit——_nav.52_siteid.134_entryid.351_dir._likecms.html
MicroCapital.org story, February 2, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Loans $10m to Megabank of Ukraine with Focus on Microfinance”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-loans-10m-to-megabank-of-ukraine-with-focus-on-microfinance/
MicroCapital.org story, December 20, 2010, “European Fund for Southeast Europe Loans $19m to ProCredit Bank SA of Romania for Microfinance”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-loans-19m-to-procredit-bank-sa-of-romania-for-microfinance/
MicroCapital’s Microfinance Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital’s Microfinance Universe Profile: Patria Credit, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Patria+Credit+SA
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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