A senior unsecured loan of up to EUR 1 million to be provided in two equal tranches under the Western Balkans Women in Business Programme ("WB WiB") Phase II.
The proceeds of the Bank's investment will be used for on-lending to eligible women-led micro, small and medium enterprises ("MSMEs") in Kosovo in accordance with the Policy Statement.
ETI score: 68
The project contributes to the objectives of the WB WiB Phase II, supporting the Transition Impact qualities of Inclusive and Competitive:
Inclusive: The project will contribute to women's economic inclusion by supporting women-led MSMEs' access to finance and business advisory services, while demonstrating the business case for scaling-up lending to the women-led MSME segment.
Competitive: Transition impact is expected to derive from market expansion in line with the EBRD Financial Intermediaries Framework.
KREDITIMI RURAL I KOSOVES LLC
Kreditimi Rural i Kosoves, LLC ("KRK") is the third largest microfinance institution ("MFI") in Kosovo by gross loans and the only MFI currently organised as a limited liability company. Operating since 2000, KRK provides access to finance to low-income individuals in rural and urban areas of Kosovo, prioritising the agricultural sector. KRK has a network of 27 branches across the country and around 250 employees. KRK has a strong shareholder base comprised of EFSE (42.2%), FMO (29.2%), SIDI (17.4%), and Credit Cooperatif (11.2%).
EBRD Finance Summary
Total Project Cost
Risk Mitigation: financing from commercial sources is not available to KRK, which currently relies on wholesale borrowings from institutional investors and IFIs. Even though other financing options from these investors may be accessible, KRK values the long-term relationship with the EBRD as a financier; it provides comfort to the client with the commitment to develop further its practices and it is also expected to instill trust among other financiers of the client based on the EBRD's reputation and context-specific knowledge.
Knowledge, innovation, and capacity building: under the WB WiB Phase II programme, the EBRD offers a holistic support package that comprises, alongside the financing, TC and First Loss Risk Cover. Altogether, these components are expected to build up KRK's capacity to cater to the needs of women-led MSMEs, enhance the opportunities of women-led MSMEs themselves (through ASB support) and ultimately contribute to the alleviation of gender gaps in access to finance and know-how in the country.
Environmental and Social Summary
Categorised FI (ESP 2019). KRK is an existing client and has demonstrated compliance with PRs 2, 4 and 9 through its latest Annual Environmental and Social Report for 2020. KRK will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Micro, SME and Corporate Loans, as well as the applicable PRs, and submit annual E&S reports to the Bank. BB has appropriate staffing and risk management procedures in place to cover the requirements of MSME and WiB lines. BB is required to apply its current E&S risk management process and ensure compliance of sub-projects with national EHS requirements.
Technical Cooperation and Grant Financing
FI TC: Up to EUR 2 million at the Programme level for beneficiaries under WB WiB Phase II, focusing on baseline assessment, capacity building, product development, marketing and outreach support. TC funds are provided by the Governments of Sweden and Luxembourg.
Advice for Small Business TC: Up to EUR 3.5 million at the Programme level to support women-led MSMEs (including advisory services, training, mentoring, and network opportunities).
Non-TC: Risk sharing in the form of First Loss Risk Cover ("FLRC") of up to 10% of the Loan, with a cap of 70% for any single sub-loan. Non-TC funds for FLRC are provided by the EBRD Shareholders Special Fund.
Company Contact Information
20 Behije Dashi str. Pristina 10000 Kosovo
PSD last updated
13 Apr 2022
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Access to Information Policy (AIP)
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.