How EFSE is funded

The European Fund for Southeast Europe is a public-private partnership in the truest sense of the term: The EFSE is replenished with funds from various donor agencies and European governments, international financial institutions, as well as by private investors. The existing donor or public capital constitutes what is termed a "first loss" tranche, which is the first tranche to be used in the event of losses. Other risk tranches are tailored to the returns and risk requirements of other investors, who often wish to participate in the EFSE because of the prestige associated with it.

To-date, EFSE has acquired committed funds of over EUR 768 million, approximately 64% of which is private capital. This leveraging potential is critical for the region, which is still in the stages to develop its capital markets in times when economic growth depends ever more on access to long-term financing.

Due to the innovative investment structure of the Fund, EFSE is able to provide nearly unlimited access to long-term financing resources at market conditions for qualified financial institutions in the region of Southeast Europe and the European Eastern Neighbourhood region.

At a glance - Key figures

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

Words from our Donors & Investors

Stefan Füle,
European Commission

The EFSE: a vital component of the growth strategy for Southeast Europe and further EU integration
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Dirk Niebel,
German Federal Minister for Economic Cooperation and Development

Building momentum in development finance
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Dr. Norbert Kloppenburg,
Member of the Executive Board of KfW Bankengruppe

Building momentum in development finance
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