The European Bank for Reconstruction and Development is supporting energy efficiency by providing a loan increase of up to EUR 1 million to the Agency for Finance in Kosovo* (AFK), a microfinance institution.
The fresh funds will be added to the current EUR 500,000 energy efficiency loan, 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, according to a report on the bank’s website. KoSEP is a EUR 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 the New Norway Cooperation Fund and the EBRD Shareholders Special Fund. AFK has already financed over 1,100 projects under 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.
KoSEP is a EUR 12 million facility which extends funds to local partner financial institutions for on-lending to households and small businesses.
Elena Petrovska, EBRD’s associate director and its head representative, 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, the microlender’s executive director.
EBRD began investing in Kosovo* in 1999, the statement said. To date, the bank has signed 44 projects with a net cumulative business volume of EUR 150 million. Kosovo* became the member of EBRD and country of operations in December 2012.