The European Fund for Southeast Europe (EFSE), a fund that seeks to foster economic development in southeastern Europe and parts of Central Asia, has made an equity investment of EUR 479,000 (USD 643,000) in Kreditimi Rural I Kosoves LLC (KRK), a microfinance institution based in Kosovo. The percentage of the institution to be held by EFSE was not made public. As of September 2012, KRK reported total assets of USD 13.6 million, a gross loan portfolio of USD 11.5 million, return on assets (ROA) of 0.8 percent and return on equity of 2.55 percent. The institution had 5,390 active borrowers as of December 2011. It does not accept deposits.
As of March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
By Nicole Boyd, Research Associate
About Kreditimi Rural I Kosoves LLC (KRK)
Kreditimi Rural I Kosoves (KRK) is a microfinance institution based in Kosovo. Formerly called the Rural Finance Project of Kosovo, KRK aims to assist farmers and rural microentrepreneurs in restoring and developing agricultural production capacity and establishing a sustainable, community-based rural credit scheme. As of September 2012, KRK reported TO the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 13.6 million, a gross loan portfolio of USD 11.5 million, return on assets (ROA) of 0.8 percent and return on equity of 2.55 percent. The institution had 5,390 active borrowers as of December 2011. It does not accept deposits.
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 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 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
European Bank for Reconstruction and Development (ERBD). “EBRD Offers Belarus Firms Energy Efficiency Funding,”
http://www.ebrd.com/pages/news/press/2013/130219a.shtml
MicroCapital. January 10, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Lends $24m to AccessBank of Azerbaijan, Kreditimi Rural I Kosoves of Kosovo, Byblos Bank Armenia, Alter Modus of Montenegro,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-lends-24m-to-accessbank-of-azerbaijan-kreditimi-rural-i-kosoves-of-kosovo-byblos-bank-armenia-alter-modus-of-montenegro/
MicroCapital. May 11, 2012, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Lends $23m to Inecobank of Armenia, Megabank of Ukraine, Partner MikroKreditna Fondacija Tuzla of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-lends-23m-to-ineco-bank-of-armenia-megabank-of-ukraine-partner-mikrokreditna-fondacija-tuzla-of-bosnia-and-herzegovina/
MicroCapital Universe Profile: Kreditimi Rural I Kosoves LLC (KRK) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kreditimi+Rural+I+Kosoves
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
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