IFC to Finance Small and Medium-sized Businesses with 18.5 Million Euros

The International Finance Corporation (IFC) has invested € 18.5 million in the European Fund for Southeast Europe (EFSE).

Resources in fourteen countries in Europe and Central Asia will be used to finance micro, small and medium-sized businesses.

Loans will be issued through banks and microfinance organizations. It is the largest sponsor of micro, small and medium businesses in the EFSE region.

The resource will benefit the region’s micro, small and medium-sized businesses and those borrowers for whom funding is less available.

According to studies, the financial needs of 27% of micro, small and medium-sized businesses in the region of Europe and Central Asia are not funded, and this deficit is estimated at $ 740 billion worldwide. IFC's investment will help increase market competitiveness and the use of innovative financial products.

According to the Financial Institute, small businesses now need urgent help to continue operating and retain jobs.