The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), has recently disbursed a loan of EUR 4 million (USD 5.2 million) to Mikrofin Banja Luka of Bosnia and Herzegovina and AMD 375 million (USD 911,600) to Inecobank of Armenia [1].
Inecobank, a microfinance bank that provides financial services to micro-, small and medium-sized enterprises, reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 220 million, a gross loan portfolio of USD 167 million, deposits of USD 63.8 million, return on assets (ROA) of 4.16 percent and return on equity (ROE) of 23.4 percent. As of December 2011, Inecobank reported 72,786 active borrowers and 9,788 depositors. Since 2010, 84 percent of loans disbursed by Inecobank have been to borrowers in rural areas.
Mikrofin Banja Luka, a microfinance institution that serves low-income entrepreneurs, reported to MIX total assets of USD 127 million, a gross loan portfolio of USD 103 million, ROA of 1.11 percent, ROE of 4.18 percent and 36,562 active borrowers as of 2011. Mikrofin Banja Luka does not accept deposits.
As of March 2012, EFSE reported an outstanding investment portfolio of EUR 723 million (USD 885 million). News of the transactions was provided to MicroCapital by Finance in Motion, a German firm that acts as advisor to EFSE.
By Jennifer Young, 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 2012, EFSE reported an outstanding investment portfolio of EUR 723 million (USD 885 millions). As of March 2013, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
About Inecobank
Founded in 1996, Inecobank is an Armenia-based closed joint stock company focusing on providing financial services to micro-, small and medium-sized enterprises (MSMEs). For the year 2012, Inecobank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 220 million, a gross loan portfolio of USD 167 million, deposits of USD 63.8 million, return on assets (ROA) of 4.16 percent and return on equity (ROE) of 23.4 percent as of March 2012. As of December 2011, Inecobank reported 72,786 active borrowers and 9,788 depositors. Since 2010, 84 percent of loans disbursed by Inecobank have been to borrowers in rural areas.
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 2011, Mikrofin reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 127 million, a gross loan portfolio of USD 103 million, return on assets (ROA) of 1.11 percent, return on equity (ROE) of 4.18 percent and 36,562 active borrowers. Mikrofin does not accept deposits.
Sources and Additional Resources
[1] Information submitted by Finance in Motion to MicroCapital, May 2013.
MicroCapital Story, April 22, 2013, ”MICROCAPITAL BRIEF: Inecobank Increases Lending to Micro-, Small Businesses in Rural Armenia, Securing all of $700k Offered Through International Finance Corporation as Performance-Based Grants,”
https://www.microcapital.org/microcapital-brief-inecobank-increases-lending-to-micro-small-businesses-in-rural-armenia-securing-all-of-700k-offered-through-international-finance-corporation-as-performance-based-grants/
MicroCapital Story, April 4, 2013, “MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) to Loan $1.9m to Mi-Bospo of Bosnia and Herzegovina,”
https://www.microcapital.org/microcapital-brief-the-european-fund-for-southeast-europe-efse-to-loan-1-9m-to-mi-bospo-of-bosnia-and-herzegovina/
MicroCapital Story, November 2, 2012, “MICROCAPITAL BRIEF: Absolute Dual Return-Vision Microfinance Fund Invests $3.2m in FINCA Russia, AzerCredit of Azerbaijan, Bank Constanta of Georgia, Mikrofin of Bosnia and Herzegovina,”
https://www.microcapital.org/microcapital-brief-absolute-dual-return-vision-microfinance-fund-invests-3-2m-in-finca-russia-azercredit-of-azerbaijan-bank-constanta-of-georgia-mikrofin-of-bosnia-and-herzegovina/
MicroCapital Story, October 12, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $8m to Mikrofin Banja Luka of Bosnia and Herzegovina, ProCredit Bank Macedonia to Support Micro-, Small and Medium-Sized Enterprises,”
https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-8m-to-mikrofin-banja-luka-of-bosnia-and-herzegovina-procredit-bank-macedonia-to-support-micro-small-and-medium-sized-enterprises/
MicroCapital Story, 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: The 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: Inecobank CJSC
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=INECO+Bank+CJSC
MicroCapital Universe Profile: Mikrofin Banja Luka
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrofin+Banja+Luka
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