Luxembourg and Turkey, 20 December 2023 – The European Fund for Southeast Europe (EFSE) has participated in the Türkiye Earthquake Response Program (“TERP”) led by IFC in response to the devastating earthquakes in Türkiye earlier in this year. Following significant loss of life, injury and heavy physical damage in 11 cities in the southeastern parts of Türkiye, EFSE funds will be on-lent to micro and small businesses and small farmers located in the affected region helping them recover from the economic impact of the earthquake.
Prior to the natural catastrophe, around 25% of EFSE's sub-loan portfolio in Türkiye was deployed in the affected regions, focusing on rural areas. The additional financing will help alleviate immediate access to finance challenges of micro and small businesses and small farmers in disaster-hit areas to recreate economic development and support employment.
EFSE Board Chairperson Dr. Klaus Müller said, "We are pleased to announce EFSE’s continued commitment in the earthquake recovery efforts in Türkiye which demonstrates the Fund’s ongoing commitment and support to its partners and their sub-borrowers reinforcing its longstanding impact investor presence in the country.”
About EFSE
The European Fund for Southeast Europe (EFSE), advised by impact asset manager Finance in Motion, is an impact fund that takes a comprehensive approach to fostering economic development and prosperity in Southeast Europe and the EU Eastern Neighbourhood Region. By investing in local financial infrastructure that provides dedicated financing to micro, small and medium enterprises, the Fund supports the backbone of these regions' economy. As one of the largest MSME funds worldwide, it has a long and successful track record in building strategic partnerships with local financial players, providing tailored debt financing solutions, including local currency loans and targeted agri-financing. The Fund's investment activities are complemented by the nonfinancial support of the EFSE Development Facility, which builds capacities, facilitates knowledge exchange, and nourishes an environment for entrepreneurs to grow.
EFSE was initiated in 2005 by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
About Finance in Motion
Finance in Motion, Germany serves as EFSE’s advisor and is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities. EFSE’s impact is managed in line with the industry standard Operating Principles for Impact Management, also demonstrated by the strong results of the latest independent verification of the advisor’s impact management practices in 2023.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu.
For more information on Finance in Motion, please visit: www.finance-in-motion.com
Media contact EFSE
Louise Daruwalla-Nielsen
Marketing & Communications
Email: press@efse.lu
Phone: +352 691 336 439
