The European Fund for Southeastern Europe (EFSE) has recently signed a loan of EUR 20 million (USD 26.7 million) to Raiffeisenbank EAD (Joint Stock Corporation) of Bulgaria for the provision of loans to low-income households for renovating, enlarging or purchasing their homes. Loans to end-borrowers will be based on the EURIBOR index rate “in accordance with EFSE’s responsible finance principles” allowing borrowers to “predict the price of their loan.” This marks EFSE’s first loan agreement with Raiffeisenbank EAD. As of 2008, EFSE reports having loaned approximately EUR 30 million (USD 40.4 million) to financial institutions in Bulgaria [1].
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 Raiffeisenbank: Raiffeisenbank EAD was established in Bulgaria in 1994 and is a subsidiary of Raiffeisen International Bank-Holding AG, the steering company under Raiffeisen Zentralbank (RZB) Group in Central and Eastern Europe (CEE). Raiffeisenbank EAD is one among a network of 15 Raiffeisen banks. As indicated in its annual statement, Raiffeisenbank EAD of Bulgaria held BGN 6.8 billion (USD 4.7 billion) in assets and a gross loan portfolio of BGN 4.6 billion (USD 3.1 billion) in the year 2009. Raiffeisenbank EAD of Bulgaria does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
By Diana Baide, Research Assistant
Sources and Additional Sources:
[1] EFSE. “EFSE provides EUR 20 million to Raiffeisenbank (Bulgaria) to promote housing finance in Bulgaria.” September 23, 2010.
MicroCapital’s Microfinance Universe profile: European Fund for Southeastern Europe
MicroCapital’s Microfinance Universe profile: Raiffeisenbank EAD of Bulgaria.
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Raiffeisenbank+EAD+of+Bulgaria
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