MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) Pledges $1b to Small Business in Southeast Europe In Preparation For Annual Meeting to be Held from June 8-10, 2010

European Fund for Southeast Europe (EFSE), an organization based in Germany that attempts to foster economic development in Southeast Europe through the provision of microcredit, pledged EUR 900 million (USD 1 billion) to various financial institutions to support small businesses in the Southeast region of Europe at a press conference held in Skopje, FYR Macedonia. The conference was held in order to prepare for the Fund’s Annual Meeting, which is to be held from June 8-10, 2010 in Ohrid, FYR Macedonia. The money is specifically meant to finance long-term loans to small business, in particular to micro- and small enterprises (MSEs), as well as housing improvement loans to low-income households. According to Dr Klaus Gluabitt, the chairman of the Board of Directors of EFSE, “Small business is the growth engine for the economies of Southeast Europe. It is vital for it to have access to credit in order to restart economic growth in the region” [1].

Approximately 200 participants are expected at EFSE’s 4th Annual Meeting in Ohrid next month (which is not open to the general public). The main theme of this years meeting is “Growing Responsibly – Growing Responsibility.” Panel sessions will address various aspects of responsible businesses practices in the financial sector. The meeting will give participants the opportunity to assess and discuss the key issues related to the development of the financial sector in Southeast Europe. In addition, EFSE will host a meeting with its advisory group during the annual meeting. The group is comprised of 14 high-level representatives from the central banks of EFSE’s partner countries.

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-enterprises and 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 S. a r. l. as the fund manager. Its sole fund adviser is Finance in Motion. Since it’s founding, EFSE has invested over EUR 720 million, the equivalent of over USD 965 million, in Southeast Europe, facilitating more than 200,000 loans. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million, the equivalent of over USD 775 million. It is also certified by LuxFLAG, an independent organization that rates microfinance organizations, as of April 2010. For more information on LuxFLAG, see the MicroCapital Universe page, the link of which is listed below.

By Conner Brannen, Research Assistant

Sources and Resources:

[1] EFSE Press Release: “EFSE reconfirms support for small businesses,” May 26, 2010: http://www.efse.lu/news-events/press-releases/archive/press-releases-2010-05-26.html

[2] MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

[3] MicroCapital Universe Profile: LuxFLAG: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=LuxFLAG

[4] MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Invests $11.3m in Mikrofin of Bosnia and Herzegovina, May 17, 2010: https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-invests-113m-in-mikrofin-of-bosnia-and-herzegovina/

[5] MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) Extends $6m Credit Line to Intesa Sanpaolo Banka in Bosnia and Herzegovina for Housing Microfinance, April 14, 2010: https://www.microcapital.org/microcapital-brief-the-european-fund-for-southeast-europe-efse-extends-e6m-credit-line-to-intesa-sanpaolo-banka-in-bosnia-and-herzegovina-for-housing-microfinance/

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