MICROCAPITAL BRIEF: Green for Growth Fund (GGF) Loans $6m to Halkbank to Finance Energy-efficient Housing in Serbia

The Green for Growth Fund (GGF), which was founded by Germany’s Kreditanstalt für Wiederaufbau (KfW) and the EU’s European Investment Bank (EIB), recently disbursed EUR 5 million (USD 5.9 million) to Halkbank AD Belgrade, a subsidiary of Turkey’s government-controlled Halk Bank Incorporated. The loan is slated to back mortgages on homes that consume reduced levels of energy. GGF also will provide “training on energy savings monitoring and activities that increase public awareness of energy-efficient housing and its benefits.” GGF estimates that the funding will reduce energy usage by 43,000 megawatt-hours and carbon dioxide emissions by 13,000 metric tons.

Kenan Bozkurt, the CEO of Halkbank AD Belgrade, said, “With this renewed cooperation with the GGF credit facility, we…are especially proud to offer a new housing loan product for buying flats in buildings that have been constructed according to the latest energy efficiency standards.”

As of June 2017, Halkbank AD Belgrade reports assets of approximately RSD 37 billion (USD 360 million). As of 2017, it has branches in 24 Serbian cities. As of June 2017, Halk Bank has total assets of TRY 265 billion (USD 71.2 billion).

The Germany-based Green for Growth Fund (GGF) focuses on extending the use of renewable energy sources and enhancing energy efficiency in Europe. GGF finances and refinances energy efficiency initiatives and invests in small to medium-scale renewable energy projects. This includes offering technical support and funding to local financial institutions to fund end-users. GGF was established in 2009 by KfW and the EIB with the financial support of the EU’s European Commission, the German Federal Ministry for Economic Cooperation and Development (also known by its German acronym BMZ) and the European Bank for Reconstruction and Development (EBRD). As of the second quarter of 2017, GGF reported a portfolio of EUR 356 million (USD 420 million) outstanding to 39 active partner institutions, with 29 percent of its loans disbursed to the household sector.

By Aleks Marceau, Research Associate

Sources and additional resources:

Information provided directly to MicroCapital by Finance In Motion.

GGF home page:

Halk Bank Inc. home page:

Halkbank AD Belgrade home page:

MicroCapital on Halkbank in Macedonia:

MicroCapital on GGF in Southeast Europe:

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