EFSE Reinvestment 2023

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The project involves the reinvestment of an FC funding contribution in the European Fund for Southeastern Europe (EFSE), which was launched in 2005 under the leadership of KfW and serves to refinance small and micro enterprises (MSEs) and private households in Southeastern Europe, Turkey and the Eastern European Partnership Region through the local banking sector. The aim of the fund is to provide loans to MSEs and private households for housing modernization measures in the countries of Southeastern Europe, Turkey and the Eastern EU Partnership Region. As part of this objective, the EFSE provides loans to qualified local financial institutions, which in turn provide sub-loans to the target group. The target group consists of MSEs from all sectors and private households who have previously had no or only limited access to suitable financing options from the formal financial sector. By improving the supply of financial services to MSEs, the fund contributes to private sector development and to securing and creating jobs and income.