European Fund for Southeast Europe (EFSE) to invest 50m EUR in Serbia

- European Fund for Southeast Europe (EFSE) will invest 50m EUR in Serbia in 2009 - said Klaus Glaubitt, the President of the Board of Directors of that fund.

- Total investments of EFSE in the region of southeast Europe in 2009 will amount to 200m EUR - Glaubitt said at the press conference.

EFSE is one of the world's largest microfinance funds that collects funds from private and public sector and invest them, through banks, in the loans for small and mid-sized enterprises and farmers, as well as for households for procurement of apartments or improvement of energy efficiency.

According to the words of Glaubitt, European Commission has invested 83m EUR in EFSE, and it will provide additional 10m EUR in 2009.

- EFSE provides long-term support to economic development and creation of new jobs in the countries of southeast Europe - he pointed out and added that, at the time of the economic crisis, financial support was the most important for small and mid-sized enterprises.

The Governor of the National Bank of Serbia (NBS), Radovan Jelašić, who is a member of the EFSE Consulting Group, pointed out that that fund backed development of financial sector in Serbia and represented stable source of funds for economy.

The Chief Investment Manager in EFSE, Silvia Wisniwski, said that that fund had invested 529m EUR in the region since it had been founded in 2005, 80m EUR of which had been invested in Serbia.

Using those investments, regional banks have approved 767m EUR worth of 150,000 loans, while the banks in Serbia have granted 20,000 loans worth 161m EUR.

Wisniwski explained that it was up to banks to decide to whom to approve the loans, in accordance with their business policies and market terms, and the loans range between 5,000 and 100,000 EUR. EFSE's plan is to provide 150m EUR prior to year 2010 for loans in Serbia.

The representatives of EFSE pointed out that the Fund's Annual Assembly would be held between May 26 and 28 in Novi Sad, which is another indication of its long-term adherence to Serbia. It is expected that that meeting will be attended by over 200 people.