In August 2010, the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) managed by Oppenheim Asset Management Services, loaned USD 15 million to Belorussian-Russian Belgazprombank Joint Stock, a bank in Belarus with approximately 110,000 institutional and individual customers.
Although the bank is heavily involved with the settlement of domestic natural gas supplies and settlements for transit of Russian gas to Europe, the loan is earmarked to support microlending. As of 2007, the Bank had approximately USD 445 million in assets and a net loan portfolio of USD 229 million.
According to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, as of 2009, the EFSE has 58 active microfinance investments, with assets totaling USD 775 million.
About the European Fund for Southeast Europe (EFSE):
The European Fund for Southeast Europe (EFSE) aims to foster economic development in the southeastern Europe region by providing financial services to micro- and small enterprises and to private low-income households via qualified local financial institutions. EFSE was set up in 2005, with KfW, a German development bank, as the fund initiator and Oppenheim Asset Management as the fund manager. Its sole fund adviser is Finance in Motion. Since its founding, EFSE has invested approximately EUR 720 million, the equivalent of approximately USD 965 million, in Southeast Europe, facilitating 200,000 loans. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million, the equivalent of USD 775 million. It is also certified by LuxFLAG, an independent organization which certifies that microfinance vehicles actually invest in the microfinance sector.
About Belorussian-Russian Belgazprombank Joint Stock:
The Belorussian-Russian Belgazprombank Joint Stock was established in November 1997. It has approximately 110,000 institutional and individual customers. The bank is involved in the settlements of gas supplies to the Republic of Belarus as well as in settlements for the transit of Russian gas to Europe. As of 2007, the Bank had approximately USD 445 million in assets and a net loan portfolio of USD 229 million.
By Trevor Kwong, Research Assistant
Sources and Additional Resources:
[1] Source: EFSE email correspondence with MicroCapital
[2] MicroCapital Universe: Belorussian-Russian Belgazprombank Joint Stock:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belorussian-Russian+Belgazprombank+Joint+Stock
[3] Microfinance Information Exchange: The European Fund for Southeastern Europe (EFSE):
http://mixmarket.org/funders/efse
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