Originally published: May 7, 2008
Source: European Fund for Southeast Europe (EFSE)
The European Fund for Southeast Europe (EFSE) is lending EUR10 million (US$15 million) in local currency ProCredit Bank Romania S.A. (PCBR). PCBR will use the loan to refinance loans for micro and small domestic entrepreneurs, especially for those in rural areas.
Michael Kowalski, General Manager of PCBR said, "The banking sector in Romania has recently been among the most dynamic in the region. Still, many very small and small businesses face challenges in finding a reliable and long-term partner that understands and tailors products and services to their needs. The loan from EFSE will allow us to serve more clients without exposing them to foreign exchange risks."
To meet the demand for local currency financing, EFSE became a shareholder in The Currency Exchange Fund (TCX), a multi-currency trading and hedging platform, in January 2008. EFSE uses these hedges to create local currency denominated product offerings to clients of its target region.
- Read the complete article: EFSE Provides €10 mil in Local Currency to ProCredit Bank Romania for Very Small and Small Business Financing
- Related news: Dutch Development Bank Launches Innovative Local Currency Fund (11 Sep 2007)