The European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg, recently reported to MicroCapital that it has made debt investments totaling EUR 6.5 million (USD 8.7 million) in two banks to support micro-, small and medium-sized enterprises (MSMEs): Mikrofin Banja Luka (Mikrofin) of Bosnia and Herzegovina and ProCredit Bank Macedonia [1].
Mikrofin, a microfinance institution (MFI) operating in Bosnia and Herzegovina, will receive a loan of EUR 4 million (USD 5.36 million) to support lending to MSMEs. As of December 31, 2010, Mikrofin reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 139 million, a gross loan portfolio of USD 123 million, return on assets (ROA) of 0.3 percent, return on equity (ROE) of 1.33 percent and 40,000 active borrowers.
In the Republic of Macedonia, EFSE loaned ProCredit Bank Macedonia, a member of Germany’s ProCredit Holding, EUR 2.5 million (USD 3.35 million) in September in addition to the same amount lent separately in June as was reported by MicroCapital story on July 8. ProCredit Macedonia, a “development-oriented full-service bank,” reported to MIX total assets of USD 266 million, a gross loan portfolio of USD 197 million, ROA of 12.3 percent, ROE of 4.32 percent and 25,800 active borrowers as of December 2010. ProCredit Holding, as of December 2010, reported operations in 21 countries, assets of EUR 5.2 billion (USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (USD 4.8 billion).
As of March 31, 2011, EFSE has an outstanding investment portfolio of EUR 667 million (USD 941 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
By Nisha Koul, Research Associate
About The European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE 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. As of March 31, 2011, EFSE has an outstanding investment portfolio of EUR 667 million (USD 941 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
About Mikrofin Banja Luka: Mikrofin Banja Luka, established in 1999, is a microfinance institution (MFI) based in Bosnia and Herzegovina. It aims to “provide appropriate financial services to economically-active, low-income people that can make a profit and make it possible for them to become economically independent.” As of December 31, 2010, Mikrofin reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 139 million, a gross loan portfolio of USD 123 million, return on assets (ROA) of 0.3 percent, return on equity (ROE) of 1.33 percent and 40,000 active borrowers.
About ProCredit Bank Macedonia: ProCredit Bank Macedonia, established in 2003 and based in Macedonia, is a deposit-taking microfinance bank. It focuses on lending to micro-, small and medium-sized enterprises (MSMEs). As of December 31, 2010, ProCredit Macedonia reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 266 million, a gross loan portfolio of USD 197 million, return on assets (ROA) of 12.3 percent, return on equity (ROE) of 4.32 percent and 25,800 active borrowers. ProCredit Macedonia also reports to the MIX total deposits of USD 183 million and 118,000 depositors. ProCredit Macedonia is a member of ProCredit Holding, a German banking group that consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.
About ProCredit Holding: ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have previously had limited access to formal financial services. As of December 31, 2010, it reported assets of EUR 5.2 billion (USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (USD 4.8 billion).
Sources and Additional Resources:
[1] Information submitted by The European Fund for Southeast Europe to MicroCapital, October 2011
MicroCapital.org story, July 8, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $49m to Support Micro-, Small and Medium-Sized Enterprises (MSMEs) Through Raiffeisen Banka Serbia, ProCredit Bank Macedonia, Mikrofin Banka Luka of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-49m-to-support-micro-small-and-medium-sized-enterprises-msmes-through-raiffeisen-banka-serbia-procredit-bank-macedonia-mikrof/
MicroCapital.org story, July 7, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $29m to Raiffeisen Bank Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-29m-to-raiffeisen-bank-bosnia-and-herzegovina/
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: Mikrofin Banja Luka, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrofin+Banja+Luka
MicroCapital Universe Profile: ProCredit Bank Macedonia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Bank+Macedonia
MicroCapital Universe Profile: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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