European Fund for South East Europe (EFSE)

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The project presented here, Local Currency Financing for MSMEs (Expansion of L-Shares), is intended to support the European Fund for Southeastern Europe (EFSE) in expanding its strategic focus to expand its refinancing offer to partner institutions in local currency. At the same time, the structure of the capital market in the target region is to be strengthened and additional private funds are to be mobilized for the fund. The fund is regionally positioned to diversify country risks. The EFSE is a microfinance fund launched in December 2005 under the leadership of KfW and has since become a flagship project of German development cooperation in the region. The general aim of the fund is to provide loans to MSMEs and private households for housing modernization measures in the countries of Southeastern Europe and Turkey, as well as in the Eastern EU Partnership Region (ENR). The target groups to be reached are refinanced by the EFSE via qualified local financial institutions.