European Fund for Southeast Europe invests $5 million in The Currency Exchange Fund (TCX)

Frankfurt am Main, January 23, 2008 – Today, the European Fund for Southeast Europe (EFSE) signed an equity investment of US-Dollar 5 million in The Currency Exchange Fund (TCX) as part of its founding investors. TCX is a multi-currency trading and hedging platform backed by a number of renowned development finance institutions, including FMO, KfW, EBRD, and by the Dutch Minister for Development Cooperation. It is currently funded with well above the originally targeted US-Dollar 350 million.

As shareholder in TCX, EFSE primarily wishes to expand its investments denominated in local currency to broaden its range of financial instruments. This will increase EFSE's ability, in times of heightened uncertainty in the capital markets, to reduce the inherent tension existing in many of its target countries between bank borrowings that are often denominated in Euro and final borrowers whose income is primarily in local currency. Through TCX, EFSE will obtain access to hedges in currencies in those countries of its operations, such as Albania, Serbia or Moldova, where little to no alternative capital market hedges exist.

EFaSE was launched in December 2005 and aims at supporting economic development and fostering prosperity by providing financial means for private entrepreneurs and households through qualified commercial banks and micro finance institutions.

Visit EFSE's website: www.efse.lu

Media contacts

EFSE Mr. Samir Djikić, Communications Manager Tel: +49 (0)69 9778 7650-26 E-mail: press@efse.lu