FIF - MSME Loan - AFK

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This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website. Provision of a 2-year senior unsecured loan of up to EUR 2 million to AFK, a strategic long-term microfinance institution partner of EBRD in Kosovo, to support its lending operations amidst adverse consequences of Covid-19. The facility, an MSME loan under the Financial Intermediaries Framework ("FIF"), will be provided in two equal tranches (second tranche uncommitted). EBRD's facility will be extended to AFK in parallel and conditional to new financing from EFSE (EUR 2 million, tenor of 3 years) and CoopEst (EUR 0.5 million, tenor of 3 years), whose signing and first tranche disbursement is also scheduled for June. The loan proceeds will be used to provide working capital loans to sub-borrowers (eligible small and micro businesses) in line with the MSME Policy Statement.