Europe fund to boost small business in Azerbaijan
The European Fund for Southeast Europe (EFSE) has approved an
expansion of the Fund's target region to include four new countries
of the European Eastern Neighborhood region, which is expected to
boost the development of small business in Azerbaijan.
The decision, passed at a recent shareholder meeting, paves the way for the EFSE to provide financing for micro and small enterprises (MSEs) and home improvement in Azerbaijan, as well as in Georgia, Armenia, and Belarus, the
EFSE reported.
The expansion will enhance the level of financial intermediation in the new target countries and will bring much-needed financing, especially to MSEs in rural areas and to the private small-scale agriculture sector, the fund said.
Over the next five years, the EFSE is expected to provide financing to banks and microfinance institutions totaling 300 million euros in the new target countries in addition to up to 1 billion euros envisaged for the Southeast Europe region. In doing so, the Fund will provide financing for about 70,000 loans to MSEs in the new target countries.
With an investment portfolio of 559 million euros, the EFSE is the world's largest microfinance investment fund. Aimed at fostering economic development and prosperity in the region of Southeast Europe and European Eastern Neighborhood countries, the Fund offers long-term funding instruments to qualified local financial institutions for on-lending to micro and small enterprises (MSEs) and low-income private households.
Since its inception in December 2005, the Fund, initiated by KfW, has facilitated approximately 200,000 loans to MSEs and private households, totaling over 1 billion euros.
The Fund has 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, Denmark and Albania, KfW, International Finance Corporation, FMO Netherlands Development Bank, European Bank for Reconstruction and Development, European Investment Bank and other private investors.*
The decision, passed at a recent shareholder meeting, paves the way for the EFSE to provide financing for micro and small enterprises (MSEs) and home improvement in Azerbaijan, as well as in Georgia, Armenia, and Belarus, the
EFSE reported.
The expansion will enhance the level of financial intermediation in the new target countries and will bring much-needed financing, especially to MSEs in rural areas and to the private small-scale agriculture sector, the fund said.
Over the next five years, the EFSE is expected to provide financing to banks and microfinance institutions totaling 300 million euros in the new target countries in addition to up to 1 billion euros envisaged for the Southeast Europe region. In doing so, the Fund will provide financing for about 70,000 loans to MSEs in the new target countries.
With an investment portfolio of 559 million euros, the EFSE is the world's largest microfinance investment fund. Aimed at fostering economic development and prosperity in the region of Southeast Europe and European Eastern Neighborhood countries, the Fund offers long-term funding instruments to qualified local financial institutions for on-lending to micro and small enterprises (MSEs) and low-income private households.
Since its inception in December 2005, the Fund, initiated by KfW, has facilitated approximately 200,000 loans to MSEs and private households, totaling over 1 billion euros.
The Fund has 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, Denmark and Albania, KfW, International Finance Corporation, FMO Netherlands Development Bank, European Bank for Reconstruction and Development, European Investment Bank and other private investors.*
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