MICROCAPITAL BRIEF: Microfinance Investment Vehicle (MIV) European Fund for Southeast Europe (EFSE) Loans NLB Prishtina of Kosovo and ProCredit Bank Serbia $34.9m

The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) advised by Finance in Motion and managed by Oppenheim Asset Management Services, has reported to MicroCapital that it loaned NLB Prishtina, a commercial bank based in Kosovo, and ProCredit Bank Serbia, a development-oriented bank, a total of USD 34.9 million.

NLB Prishtina received a loan of USD 13.9 million from EFSE. The bank is part of the NLB Group, a Slovenian-based financial institution that operates in Great Britain and Eastern Europe. NLB Prishtina formed in 2008 as a result of the merger of two other members of the NLB Group: NLB Kasabank and NLB New Bank, both of Kosovo. As of September 2010 the bank had 17 offices and total assets of EUR 324 million (USD 455 million). Customer deposits totaled EUR 274 million (USD 384 million). With 54 members, and 12 banks under ownership, NLB Group reports EUR 19.3 billion (USD 27.1 billion) in total assets as of March 2010.

ProCredit Bank Serbia received a loan of USD 20.9 million from EFSE. The bank is part of the global ProCredit Holding network, a credit and banking outfit that serves small and medium-sized enterprises (SMEs). ProCredit Bank Serbia focuses on lending to micro-, small and medium-sized enterprises to help create jobs and boost local economies. As of 2009 the bank had 79 offices and total assets of USD 1.05 billion. Additionally, the bank had return on assets (ROA) of 1.2 percent and return on equity (ROE) of 9.2 percent at the end of the 2009 fiscal year. With 21 banks under ownership, ProCredit Holding reports EUR 4.9 billion (USD 6 billion) in total assets.

The EFSE has an outstanding investment portfolio of USD 831 million [1].

By John Howard-Smith, Research Associate

About the European Fund for Southeastern Europe (EFSE): Established in 2005, the European Fund for Southeastern Europe 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, and it is managed by Oppenheim Asset Management Services. EFSE has an outstanding investment portfolio of USD 831 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 ProCredit Holding: ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle- income savers who have previously had limited access to formal financial services. As of 2009 it had total assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion)

About ProCredit Bank Serbia: ProCredit Bank Serbia is a development-oriented bank. It is one of 21 divisions of ProCredit Holding, a private bank established in 1998 with headquarters in Frankfurt, Germany. ProCredit Bank Serbia began operations in 2001. The bank focuses on lending to micro-, small and medium-sized enterprises. As of 2009, ProCredit Bank Serbia had USD 1.05 billion in total assets, a gross loan portfolio of USD 633 million, 103,000 active borrowers with an average loan balance of USD 6,120 per borrower and 451,000 depositors with USD 591.6 million in total deposits.

About NLB Prishtina: NLB Prishtina is one of 12 banks that comprise the NLB Group, a financial group with operations in Great Britain and Eastern Europe. As of September 2010 the bank had 17 offices and total assets of EUR 324 million (USD 455 million). Customer deposits totaled EUR 274 million (USD 384 million). No further information is available, as NLB Prishtina does not report to the MIX Market, the microfinance information clearinghouse.

[1] Data submitted by European Fund for Southeast Europe to MicroCapital October 2010

MicroCapital’s Microfinance Universe profile: European Fund for Southeast Europe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+(EFSE)

MicroCapital’s Microfinance Universe profile: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding

MicroCapital’s Microfinance Universe profile: ProCredit Bank Serbia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=procredit+bank+serbia

MicroCapital’s Microfinance Universe profile: NLB Prishtina, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=NLB+Prishtina

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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