EFSE provides EUR 7 million loan to Albania's Credins Bank

Credins Bank and the European Fund for Southeast Europe (EFSE) signed the Framework Agreement on a loan of EUR 7 million.

Frankfurt am Main, July 10, 2009 – A Framework Agreement was signed between the European Fund for Southeast Europe (EFSE) and Credins Bank on a loan amounting to EUR 7 million on 27th May, 2009, in Novi Sad, Serbia. The signing of this Framework Agreement as well as individual loan agreements will serve well for the further development of the lending activity of Credins Bank, which focuses mainly on micro and small enterprises.

“We are overjoyed to have signed this Agreement, which serves as testimony for the trustworthiness and the high reputation of Credins Bank among the international financial institutions. The signing of this Agreement is of special importance, especially taking into account the current financial situation, where liquidity sources in the international financial markets are drying up”, said Mrs. Monika Milo, Deputy General Manager of Credins Bank.

“EFSE is committed to helping Albania’s financial sector promote the development and growth of micro and small businesses,” said Sylvia Wisniwski, Chief Operating Officer of EFSE. “Apart from boosting confidence in the banking sector and ensuring the continuing flow of lending to the real economy in times of crisis and scarce funding, EFSE’s financing is also expected to have a strong developmental impact as it will help create new jobs and accelerate business growth for more than 1,000 micro and small enterprises,” she added.

Credins Bank has been well known for financing the large and corporate business segment. However, in order to better diversify its loan portfolio, for the past two years it has been focusing on the on-lending of credit to small and micro businesses, in accordance with the demands on the market. The previous 6 years of activity have shown that Credins Bank has gone through a solid progress, presenting itself as a bank with high liquidity indicators, high efficiency indicators, well capitalised, with a qualitative loan portfolio and altogether very profitable. Today, Credins Bank holds a very good position in the Albanian banking market, with total assets of 41 Bio Leke, a loan portfolio of 35.6 Bio Leke and 35.6 Bio Leke in client accounts. Credins Bank is present across the whole of Albania with 32 branches and agencies.

EFSE was launched in December 2005 and represents the first public-private partnership of its kind. Established by KfW, EFSE is among the three largest microfinance investment vehicles in the world, with an investment portfolio of EUR 532 million as of end of March 2009. Aimed at fostering economic development and prosperity in Southeast Europe, EFSE offers long-term funding instruments to local financial institutions for on-lending to micro and small enterprises as well as to low-income private households. The Fund exhibits a strong investor base of donors, international finance institutions and private institutional investors, including: European Commission, Federal German Ministry for Economic Development and Cooperation (BMZ), the governments of Austria, Switzerland and Denmark, KfW, IFC International Finance Corporation, EBRD European Bank for Reconstruction and Development, FMO Netherlands Development Bank, EIB European Investment Bank, OeEB Oesterreichische Entwicklungsbank (Development Bank of Austria), German bank Sal. Oppenheim, French bank Crédit Coopératif and Deutsche Bank. In addition, the first government from Southeast Europe, the Government of the Republic of Albania, has recently joined EFSE’s family of investors. EFSE operates in Bosnia Herzegovina, Romania, Serbia, Kosovo, Montenegro, Moldova, Macedonia, Bulgaria, Ukraine and in Albania.

Media contacts

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