The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle launched by German development bank KfW Entwicklungsbank, has informed MicroCapital that it recently disbursed an AMD 400 million (USD 974,000) loan to open joint stock corporation Araratbank of Armenia, a bank that primarily provides financial services to micro-, small and medium-sized enterprises (MSMEs) in the country.
As of June 2012, Araratbank holds a loan portfolio of USD 117 million and serves approximately 24,000 borrowers. The European Bank for Reconstruction and Development (EBRD) holds a 25-percent stake in the bank plus one share. As of March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million).
By Charlotte Newman, Research Associate
About Araratbank
Araratbank, previously called Haykap Bank, was founded in 1991 in Armenia and provides services primarily to micro-, small and medium-sized enterprises (MSMEs). The UK-based European Bank for Reconstruction and Development (EBRD) hold a 25-percent stake in the bank plus one share. As of June 2012, Araratbank holds a loan portfolio of USD 117 million and serves approximately 24,000 borrowers.
About European Fund for Southeast Europe (EFSE)
Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and 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 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of 2013, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
Information sent to MicroCapital by EFSE.
MicroCapital.org story, January 15, 2013, “MICROCAPITAL BRIEF: responsAbility Social Investments Loans $1.5m to Al Majmoua (Lebanese Association for Development), $10m to Araratbank of Armenia,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-loans-1-5m-to-al-majmoua-lebanese-association-for-development-10m-to-araratbank-of-armenia/
MicroCapital.org 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 Universe Profile: European Fund for Southeast Europe (EFSE)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: Araratbank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ARARATBANK
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Araratbank of Armenia, FMO Ink $10m Risk-sharing Facility to Boost MSMEs
- SPECIAL REPORT: Yikri of Burkina Faso Wins $110k European Microfinance Award for Progress Toward Food Security #EMW2023
- SPECIAL REPORT: Investors, MFIs Continue to Wrestle with Sustainable Finance Disclosures Regulation (SFDR) #EMW2023
- MICROCAPITAL BRIEF: Sanad Fund for MSME Raises $26m from ASN Bank, Calvert Impact to Boost Financial Inclusion, Resilience in MENA
- MICROCAPITAL BRIEF: Reefy Microfinance Borrows $6.5m from EBRD for Youth-led MSMEs in Egypt
