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The EBRD is an international financial institution that is owned by 61 countries and two intergovernmental institutions (the EC and the EIB). The EBRD's Group for Small Business supports Micro and Small Enterprise (MSE) programmes through financial intermediaries. In addition to working with existing banks, the EBRD helps establish new microfinance banks and non-bank micro finance institutions. Its strategic priorities are to:
- Provide sustainable finance to micro and small businesses
- Support institution building in commercial banks and non-bank micro finance institutions
- Encourage competition within the financial sector catering to micro and small enterprises
- Regional focus and emphasis on previously under-served markets
The products it offers via its MSE program include:
- Debt: The Bank grants senior and subordinated debt to commercial banks and non-bank micro finance institutions for on-lending to MSEs. Amounts range from €20 to €2000.
- Equity: The Bank purchases ordinary or preference shares in microfinance banks and institutions, or existing commercial banks with a strategic focus on MSE finance.
- Technical assistance: Technical assistance focuses on institution building and creating MSE lending expertise.
- MSE-focused equity funds: EBRD can invest in or alongside the increasing number of funds which have been created to invest in financial institutions with a strategic commitment to the MSEs in the Bank’s countries of operation.
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