Interest Reduction Fund for Southeastern Europe

completed

The funds from the Interest Rate Reduction Fund (ZVF) are intended to enable the financing of medium and long-term investment projects for projects in the infrastructure sector that are worthy of development support, as well as in other sectors in the countries of the Stability Pact for Southeast Europe. For this purpose, market loans are to be mobilized at KfW's own risk and the interest rate to be paid by the borrower is to be subsidized by using ZVF funds. In this way, a leverage effect can be created so that a larger investment volume can be realized compared to pure FC financing. The aim of this project is to promote sectors of the economic and social infrastructure, including energy supply, housing, telecommunications and transport. In addition, suitable financial sector projects can also be implemented with funds from this project. In this context, up to the time of the EPE, a total of five KfW market loans were subsidized to (1) ProCredit Bank Macedonia, (2) ProCredit Bank Romania, (3) Banka Transilvania and (4) Raiffeisen Bank Kosovo (each project executing agency). In addition, it is planned to finance Sciete Generale Serbia within the framework of a subsidized agricultural credit program.