KEP Trust, a nonprofit microfinance institution formerly known as the Kosovo Enterprise Program (KEP), recently agreed to borrow EUR 2 million (USD 2.3 million) from the World Bank Group’s International Finance Corporation (IFC) for on-lending to farmers as well as micro- and small enterprises in Kosovo. Of the total loan package, 30 percent is sourced from the IFC-managed Global Agriculture and Food Security Program (GAFSP), which pools investment from six countries with the goal of “increasing agricultural productivity as a way to reduce poverty and increase food and nutrition security.”
KEP Trust CEO Shpend Nura said, “IFC’s loan will help us increase lending in rural areas and support the development of agriculture and small businesses in Kosovo…. The majority of our portfolio consists of loans to individuals to finance their micro and small businesses, as well as farming and small-scale agribusiness.”
KEP Trust was founded in 1999 and offers group and individual loans for enterprise, home improvement, agriculture and consumption. It has a loan portfolio of EUR 39 million (USD 46 million) outstanding to 18,000 customers as of 2018. During 2017, it earned a profit of EUR 1.5 million (USD 1.8 million).
IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. IFC has 184 member countries and total assets of USD 95 billion as of September 2017.
The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2018, it has 189 member nations. The group encompasses (1) the International Bank for Reconstruction and Development and the International Development Association, which make up the World Bank; (2) IFC; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During 2017, the World Bank Group disbursed funds totaling USD 44 billion.
Sources and Additional Resources
IFC press release
https://ifcextapps.ifc.org/ifcext/pressroom/ifcpressroom.nsf/0/93088CA46D6C32F1852582890038968B?OpenDocument
KEP Trust Annual Report 2017
http://keptrust.org/repository/docs/KEP-2017-IFRS-Eng_310110.pdf
IFC budget for fiscal year 2018
http://www.ifc.org/wps/wcm/connect/cbd63894-c62a-453c-bfc8-92b8f8a3155f/IFC+FY18+Q1+MDA+and+FS_FINAL.pdf?MOD=AJPERES
World Bank Group
http://worldbankgroup.org/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
- MICROCAPITAL BRIEF: AFI Invests $5m in Microfinance Institution AFK of Kosovo from Invest in Visions (IIV)
- MICROCAPITAL BRIEF: AfDB, IFAD Launch M1-200 to Support Agricultural SMEs in Africa
- MICROCAPITAL BRIEF: KosInvest Borrows $650k from Grameen Crédit Agricole for Microfinance in Kosovo