Europese Commissie steunt ontwikkeling private sector in Westelijk Balkan met 60 miljoen euro (en)

Today, the Commission launched a €60 million participation in the European Fund for South East Europe (EFSE). EFSE is a Luxemburg investment fund set up to support private sector development in the countries of the Western Balkans. To this end, EFSE extends credit lines to banks and micro finance organisations of the region.

EFSE was established in December 2005 as the result of a joint effort by sovereign donors, national and international financial institutions and the European Commission. With a current overall size of more than €200 million, EFSE's main feature is its capacity to attract funding from private institutional investors, thereby multiplying public funding available for micro enterprises and households to reach a size of €500 million within the next 5 years.

When launching the Commission's participation Commissioner for Enlargement Olli Rehn stated: "The added value of today's operation lies in the fact that it will ensure continuity of much needed funding to micro enterprises and households, and most specifically it will act as catalyst for a considerable amount of private investments into the Fund. Providing incentives to private investors to discover the region as an interesting investment target is a novelty in its own right."

Private sector development is an important pre-condition for the development of a functioning market economy, which itself is a key criterion for all future candidate countries to be fulfilled, if they want to join the Union. Private sector development is needed for trade to develop and investments to take place. This in turn will provide the conditions for creating jobs in the countries of the Western Balkans where unemployment levels are particularly high.

The Commission has entrusted the European Investment Fund with the management of its participation in EFSE. This participation will not take the traditional form of a cash contribution. Instead, the Commission has authorised the transfer of outstanding loans to local financial institutions. These loans are channelled from previously financed revolving loan facilities under management of Kreditanstalt für Wiederaufbau (KfW) in Bosnia-Herzegovina, Montenegro, Serbia and Kosovo (under UNSCR1244). Thereby EFSE will ensure not only continuity of these operations, but also leverage private sector capital to the region.

In its Communication "The Western Balkans on the road to the EU consolidating stability and raising prosperity"[1] of 27 January 2006, the Commission underlined the importance of the creation of favourable conditions for small and medium sized enterprises for sustained growth of the Western Balkan economies and confirmed its support to EFSE. With today's contribution the Commission has set an important signal to explore innovative ways of support and attract much needed private investments to the region.

For further information:

http://europa.eu.int/comm/enlargement/index_en.html

[1] http://ec.europa.eu/comm/enlargement/fyrom/key_documents.htm

http://ec.europa.eu/comm/enlargement/docs/pdf/com_2006_27_en_acte.pdf