The Swiss State Secretariat for Economic Affairs (SECO) recently contributed USD 5.1 million to the European Bank for Reconstruction and Development’s (EBRD’s) Small Business Initiative to support “infrastructure, enterprise and financial sector development, climate change mitigation through energy efficiency and renewable energy initiatives, and the sustainable use of natural resources” in the Kyrgyz Republic and Tajikistan. EBRD provides loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses primary via commercial banks and microfinance institutions (MFIs). SECO has donated a total of USD 189 million to EBRD from 1992 through 2016.
Alain Pilloux, EBRD Vice President, said, “SECO is one of our strongest donors and has shown a longstanding commitment to supporting the EBRD’s work with small businesses in Central Asia, including as a core donor to SME advisory activities in the Kyrgyz Republic” [1].
In 2016, SECO had an annual budget of CHF 440 million (USD 451 million). In 2015, UK-based EBRD invested EUR 9.4 billion (USD 10.7 billion) in 381 projects in 34 countries, and reported total members’ equity of EUR 14.6 billion (USD 16.6 billion).
By Jason Wei, Research Associate
Sources and Additional Resources
About the Swiss State Secretariat for Economic Affairs (SECO)
The State Secretariat for Economic Affairs (SECO) is an agency of Switzerland’s government that is responsible for the planning and implementation of economic and trade policy measures relating to developing countries. SECO aims to integrate these countries into the global economy and promote their sustainable economic growth, thus contributing to poverty reduction. SECO’s priorities include creating stable economic conditions, competitiveness, trade diversification, domestic and foreign investment, and basic infrastructure. Particular emphasis is placed on energy, environmental and climate issues. As of 2016, SECO had an annual budget of CHF 440 million (USD 451 million).
About the European Bank for Reconstructions and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 9.4 billion (USD 10.7 billion) in 381 projects in 34 countries during 2015, and as of December of that year it reported total members’ equity of EUR 14.6 billion (USD 16.6 billion).
[1] EBRD, Switzerland strengthen support for small businesses in Central Asia, http://www.ebrd.com/news/2016/ebrd-switzerland-strengthen-support-for-small-businesses-in-central-asia.html
[2] Switzerland: EBRD shareholder profile: http://www.ebrd.com/who-we-are/structure-and-management/shareholders/switzerland.html
MicroCapital Universe Profile: SECO
MicroCapital Universe Profile: EBRD
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