About EFSE

The European Fund for Southeast Europe provides sustainable funding to micro and small enterprises helping them to grow, generate additional income and to create employment, as well as to low-income families assisting them in the improvement of their housing conditions. It does so with a strong commitment to responsible finance.

EFSE is more than just a fund: Its public private partnership model is an international role model for an intelligent and innovative development policy of the 21st century. It not only brings together public and private investors, it also provides a platform for the coordination of donor activities in Southeast Europe. This pooling of resources multiplies the impact of budget funds towards a common goal - to promote responsible financial sector development in Southeast Europe, including the European Eastern Neighbourhood Region, ensuring micro and small enterprises and low-income private households have sustainable access to financial services.

Furthermore, EFSE exhibits the following unique features:

operating as market enabler, facilitator and risk taker, being an innovator and incubator for new financial products benefiting the target group, and
ensuring sustainability of Fund operations through a commercial legal form.

At a glance - Key facts

Special investment fund
Public-private partnership involving donor agencies, international financial institutions and private institutional investors
Inception in December 2005
Initiator and lead investor: KfW Entwicklungsbank (The German Development Bank)
Business: Provision of sustainable funding to the target group of micro and small enterprises and low-income private households with limited access to financial services via local financial institutions
Goals: Foster economic development and prosperity and strengthen the financial sectors in Southeast Europe, including the European Eastern Neigbourhood Region
Products to the target group: business loans, rural business loans, housing loans
Financial intermediaries: commercial bank, microfinance institutions, non-bank financial institutions
Privately managed by Oppenheim Asset Management Services and Finance in Motion

At a glance - Key figures

Development performance

291,457 micro and small enterprise and housing loans totaling EUR 1.7 billion facilitated since inception

Investment portfolio

EUR 1,082.6 million of investments approved since inception

Funding

EUR 768 million of total commitments from donor agencies, international financial institutions and private investors
Public capital EUR 274 million (36%)
Private capital EUR 494 million (64%)

Status: 30 Sep 2011