European Fund for Southeast Europe
The EFSE is more than just a fund: its public-private partnership (PPP) structure has made the EFSE an international role model for intelligent and innovative development policy in the 21st century. The PPP approach enables the EFSE to mobilise funding from private institutional investors to top up international public donor funding for development finance. In addition, it provides a platform for the coordination of donor activities in its regions. This pooling of resources multiplies the impact of budget funds towards a common goal: to promote responsible financial sector development in the EFSE’s target countries and ensure MSEs and low-income households have sustainable access to financial services.
The Fund aims to foster economic development and prosperity in the Southeast Europe region and in the European Eastern Neighbourhood region through the sustainable provision of additional development finance, notably to micro and small enterprises (MSEs) and to private households, via qualified financial institutions.
In pursuing its development goal the Fund will observe principles of sustainability and additionality, combining development and market orientations.
The EFSE generates measurable impact in
- Supporting micro and small enterprises as the backbone of the local economies, thereby contributing to income generation and employment creation,
- Satisfying the basic need of decent shelter, and
- Strengthening local financial markets.
The EFSE operates through partner lending institutions in Southeast Europe and in the European Eastern Neighbourhood Region. These financial intermediaries include commercial banks, microfinance banks, microcredit organisations and non-bank financial institutions such as leasing companies. They on-lend funds received from the EFSE to the ultimate target group: micro and small enterprises and low-income households. All of the EFSE’s partner lending institutions are carefully selected: in addition to financial stability, they must adhere to the EFSE’s ethics and governance standards in ensuring fair treatment of their customers and transparent operations.
The EFSE is a market-enabler and serves as an incubator for financial innovations. Accordingly, it assists partner lending institutions in tapping into new markets with a promising business potential, ultimately expands the scope and scale of their services for micro and small entrepreneurs and low-income households.
- Agency/Fund
- SEE
- Western Balkans
- General
Entry created by Anna Sirocco on March 31, 2016
Modified on March 31, 2016
