European Fund for Southeast Europe (EFSE) was awarded first prize at a G-20 summit competition SME Finance Challenge. The competition examined various models of SMEs financing which proved innovative and crisis resistant.

The fund was established by the European Commission and partner IFIs. It operates in 14 European countries with bulk of operations in the Western Balkans.

The average micro-loan is €4,000 and since 2005, over 100,000 companies or entrepreneurs have received its loans.

EFSE operates via local bank, thus enhancing their administrative and financing capacity. Instrument for pre-accession assistance (IPA) contributes annually approximately €10 million to the fund. This contribution generates on average €70 million loans to SMEs in the Western Balkans.