The European Progress Microfinance Facility, which seeks to enable microfinance institutions (MFIs) within the European Union (EU) to increase lending to entrepreneurs by issuing guarantees, loans and equity financing to MFIs, has signed an agreement to supply Bulgarian MFI Mikrofond AD with an undisclosed amount of funding [1]. Mikrofond AD was established in 1999 with the goal of financing Bulgarian entrepreneurs who do not have access to the traditional banking system. As of 2010, Mikrofond reports 10 branches and having disbursed 9,000 loans with a total value of BGN 57 million (USD 41.3 million).
The European Progress Microfinance Facility was established in March 2010 by the European Commission, the executive body of the European Union. The European Progress Microfinance Facility has an initial budget of EUR 200 million (USD 282 million) and is expected to leverage to a total of EUR 500 million (USD 705 million) in microcredit over eight years, in cooperation with the European Union’s European Investment Bank (EIB) Group. The European Progress Microfinance Facility is managed by the European Investment Fund, a member of EIB Group that finances lenders to small and medium-sized enterprises (SMEs).
The European Progress Microfinance Facility has also signed agreements with Qredits, a Netherlands-based nonprofit foundation, and microStart, a Belgian MFI.
By: Alexandra Pattee, Research Associate
About European Commission: The European Commission (EC) is the executive body of the European Union (EU). It drafts proposals for European laws and implements decisions of the Parliament and European Council. EC was set up in the 1950s under the EU’s founding treaties.
About the European Investment Fund (EIF): ?The European Investment Fund (EIF) is a provider of risk finance to lenders to small and medium-sized enterprises (SME) in Europe. The fund is a public-private partnership whose shareholding structure includes the European Union’s European Investment Bank; the European Union, represented by the European Commission; and 29 financial institutions from European Union member states plus Turkey and Croatia. EIF is a member of the EIB Group, the parent organization of the European Investment Bank. As of December 31, 2009 EIF reported total assets of EUR 1.2 billion (USD 1.6 billion).
About Qredits: ?Qredits is a private foundation operated by the Dutch Ministry of Social Affairs & Employment, the Dutch Ministry of Economic Affairs, ABN-AMRO, ING Netherlands and Rabobank. Founded in 2009, it provides financing to microentrepreneurs in the Netherlands. As of 2009, Qredits has 10 branch locations and has granted 530 loans.
About microStart: microStart is a Belgian microfinance institution (MFI) established in February 2011 in collaboration with BNP Paribas Fortis, the Belgian commercial banking arm of the France-based global banking group; l’Adie, a French microfinance investment organization; and the European Investment Fund, a European Union agency that finances lenders to small and medium-sized enterprises (SMEs).
About Mikrofond AD: Mikrofond AD was established in 1999 with the goal of financing Bulgarian entrepreneurs who do not have access to the traditional banking system. Among Mikrofund’s funders is the European Progress Microfinance Facility. As of 2010, Mikrofond has 10 branch operations and has dispersed 9,000 loans with a total value of BGN 57 million (USD 41.3 million).
Sources and Resources:
[1] European Commission Press Release, “Loans for Europe’s small businesses and start-ups”, http://ec.europa.eu/news/business/110325_en.htm
MicroCapital.org Article, February 28, 2011, “European Investment Fund (EIF) of Luxembourg Makes $1m Equity Investment in Italian Microfinance Institution (MFI) PerMicro”, https://www.microcapital.org/microcapital-brief-european-investment-fund-eif-of-luxembourg-makes-1m-equity-investment-in-italian-microfinance-institution-mfi-permicro/
MicroCapital.org Article, September 9, 2010, “Dutch Microfinance Organization Qredits Receives $38.6 m in Loans From BNG, Rabobank, ING and ABN-AMRO”, https://www.microcapital.org/microcapital-brief-dutch-microfinance-organization-qredits-receives-38-6-m-in-loans-from-bng-rabobank-ing-and-abn-amro/
MicroCapital.org Article, August 2, 2010, “European Investment Fund Implements $32m Guarantee Under the European Progress Microfinance Facility for Employment and Social Inclusion”, https://www.microcapital.org/microcapital-brief-european-investment-fund-implements-32m-guarantee-under-the-european-progress-microfinance-facility-for-employment-and-social-inclusion
MicroCapital.org Article, February 26, 2010, “European Commission Launches $135m Microfinance Facility”, https://www.microcapital.org/microcapital-brief-european-commission-launches-135m-microfinance-facility/
MicroCapital.org Article, February 11, 2010, “European Commission Works on Plan to Provide $139m in Microloans to Unemployed Youth”, https://www.microcapital.org/microcapital-brief-european-commission-works-on-plan-to-provide-139m-in-microloans-to-unemployed-youth/
MicroCapital’s Microfinance Universe: European Commission: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Commission+%28EC%29
MicroCapital’s Microfinance Universe: The European Investment Fund (EIF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Investment+Fund
MicroCapital’s Microfinance Universe: Qredits?https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=qredits
MicroCapital’s Microfinance Universe: microStart, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=microStart
MicroCapital’s Microfinance Universe: Mikrofond AD, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=mikrofond+AD
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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