BSTDB JOINS TRANS BALKAN EQUITY FUND TO SUPPORT SME

Press Release | 20-Jul-2000

On July 20, 2000 BSTDB signed the agreement establishing the Trans Balkan Equity Fund (TBF), together with International Finance Corporation (IFC), Norfund (Norway), SECO (Switzerland), DEG (Germany), Finnfund (Finland), SEAF (international small enterprise assistance funds), and USAID (through SEAF). BSTDB will invest up to US$ 4m in TBF, capitalized just under US$ 25 million. Through the investment in TBF, much needed equity financing will be channeled to private sector small and medium size enterprises (SME) in Albania, Bulgaria, Romania, and other neighboring countries. The above three BSTDB member countries are expected to receive up to US$ 12 million from TBF. The Fund is structured to address the "real economies" by targeting the much smaller SME, which has been avoided by other funds so far.

This project is of particular importance for BSTDB, since the support for SME development in the region is a priority area of the Bank's activity. Moreover, the project represents the first BSTDB equity operation, its first project for Albania, Romania, and Bulgaria, and the first joint project with IFC.