The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) advised by Finance in Motion and managed by Oppenheim Asset Management Services, loaned USD 50 million to Bank of Georgia, a commercial bank, for expansion of its housing and micro- and small enterprise (MSE) lending operations.
The funding from EFSE will reportedly allow Bank of Georgia to create financial opportunities for 2,000 MSEs and approximately 600 private households. As of September 2010, Bank of Georgia reported total assets of USD 2 billion and a gross loan portfolio of USD 1.2 billion.
By Witt Gatchell, Research Associate
About European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeastern Europe aims to foster economic development in southeastern Europe and parts of Central Asia by providing financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE is privately managed with Oppenheim Asset Management Services as the fund manager and Finance in Motion GmbH as the fund advisor. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million (USD 775 million). LuxFLAG, an independent organization that certifies that microfinance vehicles actually invest in the microfinance sector, renewed EFSE’s label as of April 2010.
About Bank of Georgia: The Bank of Georgia is a universal commercial bank offering corporate banking, retail banking, wealth management, brokerage and insurance services to clients in Georgia, Ukraine and Belarus. The bank has 137 branches and approximately one million retail and 171,000 corporate current accounts. As of September 2010, Bank of Georgia reported total assets of USD 2 billion and a gross loan portfolio of USD 1.2 billion.
Sources and Additional Resources
[1] EFSE Press Release: “EFSE launches investment activities in Georgia”
MicroCapital Universe: European Fund for Southeast Europe (EFSE)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…
MicroCapital Universe: Bank of Georgia
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ban…
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