The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), has notified MicroCapital that it recently disbursed two loans totaling the equivalent of USD 16 million to Agricultural Cooperative Bank of Armenia-Credit Agricole Bank (ACBA), a microfinance bank partially owned by French bank Credit Agricole. The loans were disbursed in the amounts of AMD 400 million (USD 972,300) and USD 15 million.
As of 2011, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 574 million, a gross loan portfolio of USD 362 million, 120,596 active borrowers, deposits of USD 159 million, 229,226 depositors, return on assets of 3.02 percent and return on equity of 14.04 percent. The bank is organized as a closed joint stock company.
As of March 2012, EFSE reported an outstanding investment portfolio of EUR 723 million (USD 885 million).
By Jennifer Young, 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 reported an outstanding investment portfolio of EUR 723 million (USD 885 million). As of March 2013, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
About ACBA-Credit Agricole Bank
Agricultural Cooperative Bank of Armenia (ACBA) was founded by the Agricultural Cooperative Regional Unions of the three Armenian provinces of Shirak, Armavir and Ararat and obtained a full banking license on March 29, 1996. ACBA was initially created to finance small and medium-sized agricultural enterprises and individual farmers. In the next few years the bank began to finance non-agricultural activities. In 2006, Credit Agricole SA France made an investment in ACBA and the bank was reorganized into ACBA-Credit Agricole Bank closed joint stock company. As of 2011, ACBA reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 574 million, a gross loan portfolio of USD 362 million, 120,596 active borrowers, deposits of USD 159 million, 229,226 depositors, return on assets of 3.02 percent, and return on equity of 14.04 percent.
Sources and Additional Resources
Information submitted by Finance in Motion to MicroCapital.
MicroCapital Story, April 22, 2013, ”MICROCAPITAL BRIEF: Inecobank Increases Lending to Micro-, Small Businesses in Rural Armenia, Securing all of $700k Offered Through International Finance Corporation as Performance-Based Grants,”
MicroCapital Story, March 8, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $974k to Araratbank of Armenia,”
MicroCapital Story, January 31, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Lends $30m to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to Support Micro-, Small and Medium-Sized Enterprises (MSMEs), Agribusinesses,”
MicroCapital Story, May 11, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Lends $23m to Inecobank of Armenia, Megabank of Ukraine, Partner MikroKreditna Fondacija Tuzla of Bosnia and Herzegovina,”
MicroCapital Story, July 4, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE), Araratbank Sign $10m Loan Agreement for Micro and Small Enterprises (MSEs) in Armenia,”
MicroCapital Story, March 31, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $20m to Agricultural Cooperative Bank of Armenia (ACBA)-Credit Agricole Bank to Increase Lending to Micro-, Small and Medium-Sized Enterprises (MSMEs),”
MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE)
MicroCapital Universe Profile: ACBA Credit Agricole Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=AC
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