Responsible finance

Responsible finance -
EFSE’s approach at the Fund and investor level

Transparency of information

The European Fund for Southeast Europe aims for maximum transparency of its operations. In addition to the official reports submitted to the Luxembourg Supervisory Agency for the Investment Fund Industry (CSSF), the Fund publishes a wide range of publicly available information on a quarterly basis. Such information is presented both on EFSE’s own website as well as on microfinance information platforms.

Active support of the SMART Campaign and other industry initiatives

The Fund was among the first signatories of the SMART Campaign, a joint initiative of CGAP and ACCION International, to promote consumer protection in the microfinance industry. Furthermore, EFSE participates in a wide range of industry initiatives, e.g. the CGAP Social Performance Working Group.

Regular social performance monitoring

On a quarterly basis, EFSE monitors the proper use of the funds by its partner institutions to the end-borrowers. It does so through the collection and analysis of a comprehensive set of subloan data. In addition, the Fund commissions an Annual Development Impact Study to external consultants in order to obtain an independent opinion on its effectiveness in reaching its social mission.

"As the movement for responsible finance has gained momentum, it’s a given that organizations working in microfinance need to make an explicit commitment to the fair treatment of poor clients. But if you take yourself back a year or two it was by no means obvious: it needed leadership. EFSE stepped up to the plate as one of the first signatories to the Client Protection Principles and is now taking an active role integrating them into their day-to-day practices."