OREANDA-NEWS. October 10, 2013. According to EFSE report, the loan contract was signed at the initiative of the German Development Bank (KfW), with the financial support of the Federal German Ministry for Economic Cooperation and Development (BMZ) and the European Commission.

The loan will be used to strengthen Microinvest funding base, which will allow providing an additional support to small and medium-sized enterprises (SMEs) in rural areas of the country, as well as to agricultural enterprises. Microinvest is one of the few microfinance organizations that supports small and medium business in the rural areas, providing access to finance for entrepreneurs and farmers. Microinvest successfully distributed the previous three credit lines for the rural areas, provided by EFSE and totaling USD 8.9 million.

As the chairman of EFSE Administration Board Monika Beck has noted, given the importance of microfinance institutions in providing financial services to small and medium-sized enterprises at the appropriate level, EFSE aims to strengthen the partnership with Microinvest. In his turn, the executive director of Microinvest Paul Panciu noted that for more than ten years, Microinvest has created optimal conditions for the development of micro and small rural businesses in Moldova. In this endeavor, the EFSE has been one of the most important and reliable partners of Microinvest, and this has been proven by years of support of the activity.

Thanks to the partnership with EFSE, Microinvest has continuously managed to meet the needs of micro and small clients from rural areas, and implement the strategy to provide them with competitive financial solutions. Consequently, over 65% of our client base originate from rural areas. The European Fund for Southeast Europe (EFSE) was established in 2005 and is aimed at fostering economic development and prosperity in Southeast Europe.

The Foundation provides local long-term funding to financial institutions for on-lending micro and small enterprises as well as medium-sized enterprises and low-income private households. Earlier it was reported that ESFE partners in Moldova are 5 banks: Banca Sociala, Fincombank, Moldinconbank, Moldova-Agroindbank, Procredit Bank, as well as two microfinance organizations - Microinvest and Corporatia de finantare rurala. Microinvest operates through a network of 15 offices located all over the country and is the leading microfinance organization with total assets of 355.9 million lei as of late 2012.

Microinvest is supported by a strong group of shareholders: BFSE Holding, Oikocredit, Soros-Moldova Foundation, Soros economic Development Fund and S.I.D.I.