The European Bank of Reconstruction and Development (EBRD), a multilateral institution headquartered in London, England, recently announced that it is likely to participate in a risk-sharing endeavor totaling RSD 2.3 billion (USD 25 million) with Société Générale Serbia, a subsidiary of the France-based financial institution Société Générale. The primary purpose of this project is to finance rural microenterprises in Serbia through a partnership with AgroInvest Serbia, an affiliate of US-based NGO VisionFund International.
As of 2013, VisionFund has a loan portfolio of USD 390 million outstanding to 830,000 small businesses in 36 countries. Per its 2012 report to the US-based Microfinance Information Exchange AgroInvest has a total loan portfolio of USD 10.9 million lent to 13,290 active borrowers. AgroInvest has assets totaling USD 13.6 million as of 2012. AgroInvest does not take deposits. As of 2013, AgroInvest Serbia has a return on assets of -9.4 percent and a return on equity of -46.3 percent.
As of 2013, EBRD has total assets of EUR 49 billion (USD 65 billion), and it invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. As of 2013, Société Générale Serbia operates 107 branches in the country. Société Générale reported total assets equivalent to USD 883 billion in December 2013.
By Ananya Tiwari, Research Associate
About European Bank for Reconstruction 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 it 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). With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.
About Société Générale
Société Générale is a financial institution that was established in 1864 and is based in Paris. Société Générale offers retail and private banking, corporate and investment banking, and investment management services in 85 countries. As of December 2012, Société Générale reported total assets equivalent to USD 1.69 trillion and net banking income equivalent to USD 31 billion. As of year-end 2013, Société Générale reported total assets of USD 883 billion.
About VisionFund International
VisionFund, a US-based nonprofit organization, offers financial services to families living in poverty in the developing world through a network of microfinance institutions in 36 countries in Asia, Africa, Latin America and the Caribbean, the Middle East and Eastern Europe. Its services include small loans and business training and support. VisionFund is part of US-based World Vision, a Christian relief, development and advocacy organization. As of 2013, VisionFund has a loan portfolio of USD 390 million outstanding to 830,000 small businesses.
Sources and Additional Resources:
[1] European Bank for Reconstruction and Development:http://www.ebrd.com/pages/ project/psd/2014/46237.shtml
MicroCapital: “African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Inter-American Development Bank (IDB), World Bank Group (WBG) Issues Joint Statement on Climate Finance”, October 15, 2014,http://www.microcapital. org/microcapital-brief- african-development-bank-afdb- asian-development-bank-adb- european-bank-for- reconstruction-and- development-ebrd-european- investment-bank-eib-inter- american-development-b/
MicroCapital: “European Bank for Reconstruction and Development (EBRD) to Loan $64.8m to Banque Tuniso-Kowetienne of Tunisia for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs), Trade Financing,” January 31, 2014, https://www.microcapital.org/ microcapital-brief-european- bank-for-reconstruction-and- development-ebrd-to-loan-64- 8m-to-banque-tuniso- kowetienne-of-tunisia-for-on- lending-to-micro-small-medium- sized-enterprises-msmes-tra/
MicroCapital: “European Bank for Reconstruction and Development (EBRD) to Loan $2m to FINCA Jordan for On-Lending to Micro-, Small Enterprises (MSEs),” January 18, 2014,?http://www.microcapital. org/european-bank-for- reconstruction-and- development-ebrd-to-loan-2m- to-finca-jordan-for-on- lending-to-micro-small- enterprises-mses/
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
MicroCapital Universe Profile: Société Générale, https://www.microcapital.org/ microfinanceuniverse/tiki- index.php?page=Societe+ Generale
MicroCapital Universe Profile: Vision Fund International,https://www.microcapital.org/ microfinanceuniverse/tiki- index.php?page=VisionFund+ International
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