The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) managed by Oppenheim Asset Management Services with an investment portfolio of EUR 578.9 million (approximately USD 805 million) as of year-end 2009, has reported to MicroCapital that it loaned Hipotekarna Banka, a commercial bank based in Montenegro, and Ararat Bank, a commercial bank based in Armenia, a total of USD 11 million.
Hiptenkara Bank of Montenegro received a loan of USD 6.8 million from EFSE. Through its 12 branches, the bank provides financial services directed at small and medium-sized enterprises (SMEs). According to its 2009 financial statements, the bank has EUR 99.5 million (approximately USD 138 million) in total assets.
Ararat Bank of Armenia received a loan of USD 5 million from EFSE. The loan is for lending to micro, small and medium-sized enterprises (MSMEs) especially in remote and rural areas in Armenia. The bank currently operates 31 branches and as of 30 June 2010 has total assets of AMD 45.7 billion (USD 126 million).
By Witt Gatchell, Research Associate
About the European Fund for Southeastern Europe (EFSE):
The European Fund for Southeastern Europe was established in 2005 and aims to foster economic development in southeastern Europe by providing financial services to low-income households and micro- and small enterprises via local financial institutions. Its sole fund adviser is Finance in Motion. As of 2005, EFSE has invested EUR 720 million (USD 965 million) in Southeastern Europe, facilitating approximately 200,000 loans. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million (USD 775 million). LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed EFSE’s label as of April 2010.
About Hipotekarna Bank:
Hipotekarna Bank is a commercial bank based in Montenegro. It offers financial services to retail business and small and medium-sized enterprises (SMEs). The bank currently has 12 branches around Montenegro. As of 2009, the bank has EUR 99.5 million (approximately USD 138 million) in total assets.
About Ararat Bank:
Ararat Bank is a commercial bank based in Armenia. The bank was established as a result of the reorganization of Haykapbank, a commercial bank operating in Armenia since 1991. It offers a range of financial services to small and medium-sized businesses. The bank has 31 branches in Armenia and as of 30 June 2010 has total assets of AMD 45.7 billion (USD 126 million).
Sources and Additional Information
[1] Source: EFSE email correspondence with MicroCapital
EFSE Press Release: “EFSE provides USD 5 million loan for small business lending to Armenia’s ARARATBANK”
http://www.efse.lu/news-events/press-releases/archive/press-releases-201…
MicroCapital’s Microfinance Universe profile: European Fund for Southeastern Europe
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…
Browse the MicroCapital Universe and add your entry to the wiki at
https://www.microcapital.org/microfinanceuniverse/
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