A senior unsecured loan of up to EUR 2 million to be provided in two equal tranches under the Financial Intermediaries Framework ("FIF").
The Loan proceeds will be used for on-lending to private micro-, small and medium sized enterprises ("MSMEs") in Kosovo in accordance with the Policy Statement.
ETI score: 60
The project contributes to the objectives of the FIF, supporting the Transition Impact qualities of Competitive and Resilient:
Competitive: the project will expand KRK's lending to private MSMEs in Kosovo, with a focus on regional outreach and attraction of new MSME clients.
Resilient: KRK is expected to maintain adequate MSME portfolio quality.
KREDITIMI RURAL I KOSOVES LLC
Kreditimi Rural i Kosoves, LLC ("KRK") is the third largest microfinance institution 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 offering and lending 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: FIF policy statement, ESD requirements and financial covenants will ensure proper use of loan proceeds, adherence to the best environmental and social practices and prudent financial risk management.
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
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.