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The European Fund for Southeast Europe (EFSE) has announced the expansion of its fund structure to promote lending in local currencies. Backed by a contribution of EUR 44 million from the European Union’s EU4Business initiative and EUR 12 million from the German Federal Ministry of Economic Cooperation and Development (BMZ), the new “L-shares” will be used to enhance local currency financing in the European Eastern Neighbourhood Region in particular.
Complementing this endeavour was a simultaneous EU contribution of EUR 5 million to EFSE’s C-share class. The combined funding of EUR 61 million will help the fund absorb exchange rate risk, ultimately protecting EFSE’s target group of micro and small enterprises (MSEs) and low-income households from exchange rate...
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