European Fund for South East Europe (EFSE) Inv.

active

The primary aim of this measure is to further expand lending to MSMEs on a sustainable basis through local financial institutions in the EFSE target countries. The new commitment to the EFSE is intended to provide local currency loans to local partner institutions in order to take account of the sometimes difficult political and economic conditions. The provision of local currency loans to MSMEs with longer terms will meet a need that other international investors cannot meet. Secondly, this measure - like the previous projects - serves to appeal to private and public investors so that they can acquire additional shares in the EFSE or renew their commitments (leveraging of FC funds, PPP approach). The FC measure thus makes a valuable contribution to deepening and broadening the financial systems and to sustainable employment and income development, and thus also to improving the living conditions of the indirect target groups in the EFSE target countries (overarching development policy objective).