EFSE Azerbaijan Rural Credit (THB) Phase I and II

active

The European Fund for Southeastern Europe (EFSE) is the world's largest microfinance fund. It was launched in December 2005 under the leadership of KfW and has quickly become a flagship project of German development cooperation (DC). The fund focuses its activities on lending to micro, small and medium-sized enterprises (MSMEs) and private households as part of housing modernization measures in the countries of Southeastern Europe and Turkey as well as in the Eastern European Neighborhood Region (ENR). The EFSE provides selected and qualified local partner institutions with long-term refinancing funds at market conditions, which then provide appropriate credit facilities to the target groups mentioned. The fund has an innovative public-private partnership structure, which is characterized by a joint commitment of public and private investors in the EFSE's now 16 target countries. Public donors (such as national governments or central banks as well as supranational institutions), national and international development institutions and institutional private investors qualify as shareholders, whereby they can invest in various tranches (risk classes) and notes depending on their individual risk appetite. The fund is based in Luxembourg. The legal form chosen is an investment company with variable capital (SICAV-FIS). This structure has been successfully replicated several times in various regions since its establishment. The EFSE has very good economic results and a high level of development policy target achievement. Due to the revolving use of the funds, the target groups have permanent and long-term refinancing funds available. The EFSE also has a Development Facility, which is used, among other things, to finance personnel advisory measures for cooperating and potential partner institutions. This facility is fed both by grants and by the income generated by the fund.