The European Fund for Southeast Europe (EFSE)

The European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in the Southeast Europe region and in the European Eastern Neighborhood region through the sustainable provision of additional development finance, notably to micro and small enterprises (MSEs) and to private households, via qualified financial institutions.


December 2005

Fund Structure

Specialized Investment Fund, SICAV-SIF, under Luxembourg law involving different share classes

Committed Capital

EUR 980.1 million 

Portfolio Outstanding

EUR 909.5 million 

Initiator and Lead Investor

KfW Development Bank

Target Region

Southeast Europe: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Kosovo,* Montenegro, Romania, Serbia, and Turkey
European Eastern Neighbourhood: Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine


MSEs and private households with limited access to financial services

Target Financial Institutions 

Commercial banks, microfinance institutions, and non-bank financial institutions

Financial Instruments

Medium to long-term senior loans, subordinated loans, term deposits, subscriptions to bond issues, certificates of deposit, syndicated loans, standby letters of credit, guarantees, and equity/quasi-equity participations

Status: 30 June 2018

Finance in Motion has been mandated as an advisor to provide the following services:

  • Investment Advisory
  • Risk Management
  • General Fund Advisory
  • Technical Assistance Management

EFSE contributes to achieving the following Sustainable Development Goals by financing micro- and small enterprises and housing via financial institutions.

EFSE - Sustainable Development Goals

For more information on the Sustainable Development Goals (SDGs), please visit the official United Nations SDG knowledge platform.

Initiated by KfW Development Bank with the support of various donors and international finance institutions, the EFSE is today one of the world’s largest development finance investment funds with committed funds from investors totalling more than EUR 1 billion.

The EFSE's main investment activity is the refinancing of selected partner lending institutions in the target region with senior or subordinated credit lines, whereby the borrower obliges himself to on-lend the funds to the final target groups, including micro and small enterprises and low-income private households. On a select basis, the EFSE also engages in guarantees and equity investments in partner lending institutions. Targeted investors in the EFSE are both public and private entities.

For further information about the EFSE, please visit

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