€1 million loan increase to Agency for Finance, a microfinance lender
The European Bank for Reconstruction and Development (EBRD) is supporting energy efficiency in Kosovo by providing a loan increase of up to €1 million to the Agency for Finance in Kosovo (AFK), one of the leading microfinance institutions in the country.
The fresh funds will be added to the current €500,000 energy efficiency loan II extended under the Kosovo Sustainable Energy Projects Framework (KoSEP) earlier this year in response to growing demand for energy efficiency financing in the residential sector.
KoSEP is a €12 million facility which extends funds to local partner financial institutions for on-lending to households and small businesses. It benefits from additional donor funding provided by Norway and the EBRD Shareholder Special Fund.
AFK has already financed over 1100 projects under the EBRD’s KoSEP. The agency covers most of Kosovo and has its head office in Peja in the West of the country and a network of 13 branches and four sub-branches.
Elena Petrovska, EBRD Associate Director, Head of Kosovo, said: “We are pleased to see such strong demand for energy efficiency projects in Kosovo. AFK is a great partner with a proven track record. Our financing will increase energy efficiency and take an important step towards reaching climate efficiency targets.”
“AFK’s mission is to improve the lives of entrepreneurs running micro and small businesses, especially in the rural areas of Kosovo, by providing them with financial services. Together with the EBRD, we will help our clients realise all the benefits of energy efficiency improvements”, said Vahdet Anadolli, Executive Director of AFK.
The EBRD began investing in Kosovo in 1999. To date, the Bank has signed 44 projects in the country with a net cumulative business volume of €150 million. Kosovo became an EBRD member and country of operations in December 2012.