The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle, recently announced a senior loan of EUR 2 million (USD 2.3 million) to Agjencioni për Financim në Kosovë (AFK), a non-banking microfinance institution operating in Kosovo. The loan is to be used to expand AFK’s rural operations via on-lending to agricultural clients and other rural businesses [1].
As of 2015, AFK reported total assets of USD 15.4 million, a gross loan portfolio of USD 14 million and 10,000 active borrowers.
As of 2015, EFSE reported a gross loan portfolio of EUR 879 million (approximately USD 992 million).
By Sharanya Madhavan, Research Associate
About Agjencioni për Financim në Kosovë (AFK):
Agjencioni për Financim në Kosovë (AFK) was founded by Mercy Corps, a US-based nonprofit organization, in 1999 at the conclusion of the Kosovo War with the goal of helping low-income individuals recover from the destruction. AFK has since become independent of Mercy Corps. As of 2015, it reported total assets of USD 15.4 million, a gross loan portfolio of USD 14 million and 10,000 active borrowers. AFK does not take deposits.
About European Fund for Southeast Europe (EFSE)
The Luxembourg-based European Fund for Southeast Europe (EFSE) focuses on the development of local financial sectors in Southeast Europe and parts of Central Asia by providing “long-term” funding for micro- and small enterprises as well as private households via partner retail institutions. EFSE also operates the EFSE Development Facility, which provides technical assistance, consulting and training services to support capacity building within these partner institutions. EFSE was established in 2005 by German Development Bank Kreditanstalt für Wiederaufbau (KfW), with the financial support of the German Federal Ministry for Economic Cooperation and Development (which is also known by its German acronym BMZ) and the EU’s European Commission. The fund is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. EFSE operates in 16 countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, Romania, Serbia, Ukraine, Turkey and the former Yugoslav Republic of Macedonia. As of 2016, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised. As of 2015, EFSE reported a gross loan portfolio of EUR 879 million (approximately USD 992 million).
Sources and Additional Resources:
[1] EFSE Press Release: EFSE expands cooperation with Kosovo’s AFK
MicroCapital Universe: AFK
MicroCapital Universe: EFSE
Did you know that MicroCapital publishes the MicroCapital Monitor
newspaper each month Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: AFI Invests $5m in Microfinance Institution AFK of Kosovo from Invest in Visions (IIV)
- MICROCAPITAL BRIEF: EBRD Loans $4.4m to KEP Trust of Kosovo with Focus on Rural, Women-led MSMEs
- MICROCAPITAL BRIEF: 60 Decibels Microfinance Index Data from 32 Countries Indicates Higher Confidence Among Group Borrowers, Greatest Debt Burden in Cambodia
- MICROCAPITAL BRIEF: Agents for Impact Disburses $8m from Invest in Visions (IIV) to Microfinance Institutions Digamber of India, Imon of Tajikistan
- SPECIAL REPORT: Yikri of Burkina Faso Wins $110k European Microfinance Award for Progress Toward Food Security #EMW2023
