MICROCAPITAL BRIEF: European Fund for Southeast Europe Loans $19m to ProCredit Bank SA of Romania for Microfinance

The European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg in 2005, recently reported to MicroCapital that it made a debt investment of USD 19 million in ProCredit Bank SA of Romania, a bank catering to micro-, small and medium-sized enterprises that is part of the ProCredit Holding Group, which consists of twenty-one member banks that operate in developing countries in Eastern Europe, Latin America and Africa. EFSE’s mission is to contribute to economic development by providing financial services to micro- and small enterprises and low-income people through local institutions. Managed by Oppenheim Asset Management Services, EFSE reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, that it had fifty-eight active microfinance investments in 2009 with fund assets totaling USD 830 million. Meanwhile, ProCredit Romania reported to MIX in 2009 that it had a gross loan portfolio (GLP) of USD 258 million, total assets of USD 370 million, return on assets (ROA) of -1.85 percent and return on equity (ROE) of -22.3 percent. The bank also had 36,000 active borrowers with an average loan balance per borrower of USD 7,000 at that time.

By Julie Moksim, Research Associate

About the European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeast Europe aims to foster economic development in Southeast Europe and parts of Central Asia by providing financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE is privately managed with Oppenheim Asset Management Services acting as its fund manager and Finance in Motion GmbH acting as fund advisor. EFSE reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, that it had fifty-eight active microfinance investments in 2009 with fund assets totaling USD 830 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 Bank SA Romania: ProCredit Romania, a member of Germany’s ProCredit Group, is a full-service bank that operates in Romania. ProCredit Romania defines itself as a “development-oriented” institution that provides loans to micro-, small and medium-sized enterprises. ProCredit Romania reported to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, in 2009 that it had a gross loan portfolio (GLP) of USD 258 million, total assets of USD 370 million, return on assets (ROA) of -1.85 percent and return on equity (ROE) of -22.3 percent. The bank also had 36,000 active borrowers with an average loan balance per borrower of USD 7,000 at that time.

About ProCredit Holding Group: ProCredit Holding consists of twenty-one 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 limited access to formal financial services. As of 2009 it reported 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).

MicroCapital’s Microfinance Universe Profile: European Fund for Southeast Europe (EFSE)

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+(EFSE)

MicroCapital’s Microfinance Universe Profile: ProCredit Bank SA Romania

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Romania

MicroCapital’s Microfinance Universe Profile: ProCredit Holding Group

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding

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