Microfinance Focus, November 15, 2010: The European Fund for Southeast Europe (EFSE) and Bank of Georgia, have signed a senior loan agreement of USD 50 million for expanding the micro and small enterprise (MSE) and housing lending operations of the Bank. It is the first investment EFSE has made in Georgia. With the funding from EFSE Bank of Georgia will create financial opportunities for about 2,000 MSEs and over 600 private households.

The agreement was signed during a conference on November 11, 2010, in Tbilisi, Georgia which was jointly organized by EFSE along with the National Bank of Georgia, KfW Entwicklungsbank and the German Development Bank. Experiences and approaches to dealing with concerns over responsible finance were reviewed during the conference.

In a panel discussion, senior Georgian policy makers, KfW and EFSE representatives, as well as other finance practitioners and financial sector experts stressed the need to adapt responsible business practices in the financial sectors of Southeast Europe and Georgia.

During the conference a Client Educational Booklet on responsible finance produced by ProCredit Bank Georgia with technical support by EFSE was also presented.

Since its inception in December 2005, EFSE has offered EUR 822 million in financing to commercial banks, microfinance institutions and non-financial institutions, facilitating a total number of more than 238,000 micro and small enterprise and housing loans. Initiated by KfW (The German Development Bank), the EFSE is a Public-Private Partnership that combines funds from various private investors, European governments an international financial institutions.