European Fund for Southeast Europe working with Georgia's bank (Exclusive)
Baku, Azerbaijan, October 16
By Tamilla Mammadova – Trend:
As an impact investment fund founded in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in the 16 countries of operation by increasing access to sustainable finance for micro and small enterprises as well as private households, EFSE told Trend.
"EFSE is expanding the ability of the local financial institutions, including BasisBank in Georgia among others, to serve businesses and households with financing in their own currency", said the representatives of EFSE.
This allows the fund to generate a strong development impact by safeguarding businesses and households from exchange rate fluctuations, facilitating their sustainable growth and increasing the resilience of local economies, EFSE said.
Moreover, the EFSE provides commercial funding to local financial institutions on market-based terms.
"The fund selects its partners carefully, aiming at building and maintaining long-term strategic cooperation to achieve a strong development impact from its investments," the fund said.
"Thus, EFSE stands for sustainable and complementary engagements, including with Georgian BasisBank, with which the fund is looking forward to expanding its cooperation by providing dedicated funding and technical assistance to allow the bank to operate more effectively and grow sustainably," said the representatives of EFSE.
"The EFSE does not directly invest in local businesses. It provides dedicated financing to local financial institutions (banks, leasing companies and microfinancial organizations) that in turn finance micro and small enterprises and low-income households," said the fund. "Thus, the EFSE generates impact by supporting micro and small enterprises to grow, generate income and create employment, by contributing to improved living conditions for households and strengthening the capacities of local financial sectors to provide sustainable financial services."