Donors

EFSE is more than just a fund: its public private partnership model is an international role model for an intelligent and innovative development policy of the 21st century. It not only brings together the public and private sectors, it also provides a platform for the coordination of donor activities in Southeast Europe. This pooling of resources multiplies the impact of budget funds towards a common goal - to promote responsible financial sector development in Southeast Europe.

Grant funds provided by donors are essential for the Fund's operation mechanism. They constitute the risk cushion (First-Loss Tranche) for private investors that otherwise would be unable to invest in high-risk countries as the target region. Through this mechanism, private capital can be leveraged substantially enlarging the total amount of funds available for development purposes. Up to seven times the First-Loss Tranche can be raised for the target group. This leveraging potential of the Fund is critical for the region's development of capital markets in times when economic growth more than ever depends on access to long-term financing.

Furthermore, donors can provide grants to the EFSE Development Facility. The provision of complementary non-financial services in the form of technical assistance and capacity building to the partner institutions through the Development Facility is a unique feature of the Fund. Its services add significant value to EFSE's investments both from a target group as well as financial sector perspective.