The UK-based European Bank for Reconstruction and Development (EBRD) recently loaned EUR 1.5 million (USD 2 million) to Kreditimi Rural i Kosoves Limited Liability Company (KRK), a non-bank microfinance institution (MFI) that serves rural areas in Kosovo, for on-lending to small and medium-sized enterprises (SMEs) and residential clients in Kosovo for energy efficiency and renewable energy projects. Further information on the loan is unavailable.
The loan is provided under the EBRD Kosovo Sustainable Energy Projects Framework (KoSEP), which launched in May 2013 and plans to provide up to EUR 12 million (USD 15.7 million) to Kosovan institutions for energy investments. The European Union (EU) has provided grant funding in the amount of EUR 3 million (USD 4 million) to KoSEP to be used towards administration fees, incentives for sub-borrowers and technical cooperation for the development of projects in the country. The New Norway Cooperation Fund, an EBRD facility funded by the Norwegian government for energy and environment projects in the Western Balkans, Russia and the Ukraine, provided additional technical cooperation funding for KoSEP in the amount of EUR 325,000 (USD 425,000) [1].
As of March 2013, KRK reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.2 million, a gross loan portfolio of USD 12.2 million, return on assets (ROA) of 13.5 percent and return on equity of 42.6 percent. The institution had 5,300 active borrowers as of December 2011. It does not accept deposits.
Since 2010, EBRD has invested EUR 11 million (USD 14.4 million) in projects in Kosovo. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.
By Jennifer Young, Research Associate
About Kreditimi Rural I Kosoves LLC (KRK)
Kreditimi Rural I Kosoves (KRK) is a microfinance institution based in Kosovo. Formerly called the Rural Finance Project of Kosovo, KRK aims to assist farmers and rural microentrepreneurs in restoring and developing agricultural production capacity and establishing a sustainable, community-based rural credit scheme. The European Fund for Southeast Europe (EFSE), a Luxembourg-based, government-backed microfinance investor that aims to foster regional development; Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), a Dutch development finance institution; and Crédit Coopératif, a French cooperative bank; collectively hold 71-percent of KRK’s shares. The percentage of shares held by each institution has not been disclosed. As of March 2013, KRK reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 14.2 million, a gross loan portfolio of USD 12.2 million, return on assets (ROA) of 13.5 percent and return on equity of 42.6 percent. The institution had 5,300 active borrowers as of December 2011. It does not accept deposits.
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries 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). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.
Sources and Additional Resources
[1] European Bank for Reconstruction and Development Press Release, “KRK Joins Efforts to Improve Energy Efficiency in Kosova,” http://www.ebrd.com/pages/news/press/2013/130710.shtml
MicroCapital Story, April 2, 2013, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Plans to Allocate $15m to EBRD Kosovo Sustainable Energy Projects (KoSEP) Framework,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-plans-to-allocate-15m-to-ebrd-kosovo-sustainable-energy-projects-kosep-framework/
MicroCapital Story, February 14, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Makes $643k Equity Buy into Kreditimi Rural I Kosoves of Kosovo,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-makes-643kequity-buy-into-kreditimi-rural-i-kosoves-of-kosovo/
MicroCapital. January 10, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Lends $24m to AccessBank of Azerbaijan, Kreditimi Rural I Kosoves of Kosovo, Byblos Bank Armenia, Alter Modus of Montenegro,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-lends-24m-to-accessbank-of-azerbaijan-kreditimi-rural-i-kosoves-of-kosovo-byblos-bank-armenia-alter-modus-of-montenegro/
MicroCapital Universe Profile: Kreditimi Rural I Kosoves LLC (KRK), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kreditimi+Rural+I+Kosoves
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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