EFSE provides Raiffeisen banka Serbia with EUR 25 million credit facility to promote home improvement finance

Tirana (Albania) and Belgrade (Serbia), 7 June 2011 – The European Fund for Southeast Europe (EFSE) – initiated by KfW Entwicklungsbank (The German Development Bank) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission – will provide Raiffeisen banka a.d. Belgrade (“Raiffeisen banka Serbia” or the “Bank”) with a EUR 25 million long-term credit facility to support the Bank's home improvement loan programme. This was announced during the Fund’s Annual Meeting held today in Tirana, Albania. The credit facility is the EFSE's first to the Bank as well as its first for home improvement in Serbia. Building on the Fund’s existing micro and small enterprise (MSE) financing activities in Serbia, this credit line expands the Fund’s support of the Serbian economy.

The EFSE’s credit facility will allow Raiffeisenbank Serbia to offer longer-term home improvement finance for home renovations, enlargements, reconstruction and home purchase at competitive rates, improving access to finance for private households.

Raiffeisen banka in Serbia is a subsidiary of Raiffeisen Bank International AG (RBI). RBI is one of the foremost providers of corporate and investment banking services in Austria and a leading universal bank in Central and Eastern Europe. Its subsidiary in Serbia is one of the country’s leading commercial banks and one of the largest providers of housing finance with a nationwide network servicing about half a million of corporate and retail customers.

Under the EFSE credit line, Raiffeisen banka will offer home improvement loans with the possibility of having the interest rate fixed for a five year term, followed by a floating interest rate until maturity. The interest rate fixed for the five years period is new in Serbia and provides protection to borrowers from frequently unpredictable interest rate fluctuations, especially in volatile economic times.

“We welcome Raiffeisen banka Serbia as our new partner and the opportunity to support a well-established institution with EFSE’s first home improvement credit line in Serbia. This is only the logical continuation of the EFSE’s long-standing and successful cooperation with Raiffeisen Bank International and its subsidiaries in other EFSE target region markets,” said Dr. Klaus Glaubitt, Chairman of the Board of Directors of the EFSE. He added: “Raiffeisen banka Serbia is an ideal partner to the EFSE in its mission to support economic development and prosperity in Southeast Europe.”

Since the beginning of its operations in Serbia in 2005, the EFSE has provided local partner lending institutions with credit lines totalling EUR 179 million which have facilitated approximately 39,000 MSE loans. The EFSE’s support of the Serbian financial sector also includes technical assistance, consulting and training offered to partner lending institutions to increase their outreach to MSEs, and sector-wide activities to promote Responsible Finance.

About the European Fund for Southeast Europe
The European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the European Eastern Neighbourhood region. It provides long-term finance primarily for micro and small enterprises (MSEs) and private households in the form of home improvement loans channelled through local financial institutions. As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. Supporting the EFSE’s investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management. The EFSE was initiated by KfW Entwicklungsbank (The German Development Bank) on 15 December 2005 from four multi-donor programs managed by the bank. The EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance to leverage private funding for MSE finance in the target region. Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development, the European Commission, the Government of Albania as the first EFSE shareholder from the EFSE’s target region, the Austrian Development Bank (OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW Entwicklungsbank as Lead Investor, the International Finance Corporation (IFC), the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and Sal. Oppenheim and Deutsche Bank. Oppenheim Asset Management Services S.à.r.l, Luxembourg, and Finance in Motion GmbH, Germany, are, respectively, the EFSE’s Fund Manager and Fund Advisor.

About Raiffeisenbank Serbia
Raiffeisen banka a.d. is a member of Raiffeisen Bank International, one of the largest banking groups in Central and Eastern Europe, and a part of the RZB Group. The first bank to be founded with 100% foreign capital, it started its business activities in Serbia in July 2001. The bank’s activities encompass several business segments: corporate, retail and treasury & investment banking. Raiffeisen banka offers its clients a comprehensive range of banking services in accordance with Western service standards and with an in-depth understanding of the specifics and possibilities of the local banking market. Testifying to Raiffeisen banka’s success are also the numerous awards the bank has continually received from renowned international financial magazines since it began operations, e.g. Euromoney, The Banker, Global Finance and Finance Central Europe.

Media contact EFSE		Media contact Raiffeisenbank Serbia
Samir Djikić Manager Communications Tel: +49 (0)69/977 876 50-26 E-mail: press@efse.lu		Katarina Gaborović Head of Marketing&PR Department Tel: +381 11 2207 301 E-mail: katarina.gaborovic@raiffeisenbank.rs