KRK Senior Loan II (IFC-39206)

Countries
  • Kosovo
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Mar 30, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Kreditimi Rural I Kosoves LLC
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 4.24 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 4.24 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 26, 2018

Disclosed by Bank Feb 16, 2017


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Project Description

According to IFC website, the project consists of a senior loan of up to EUR4 million, to Kreditimi Rural i Kosoves (KRK) for on-lending to individual, micro and small enterprises (MSEs) in Kosovo. KRK is an IFC investment client since August 2015 when IFC committed a senior loan of EUR1.5 million. The Company is a leading lender to micro and small enterprises in Kosovo with a special focus to agriculture and agriprocessing (with close to 50% of the loans and 60% of the clients). By continuing engagement with KRK the project seeks to further build a solid platform to expand financing to individuals and entrepreneurs in rural and sub-urban areas, typically underserved by traditional commercial banks. The expected development impacts of the project are:

1. Stimulate access to financing to individuals, micro and small enterprises as a key contributor to country's economy
2. Create job opportunities for entrepreneurs and individuals in the rural area, including women, with direct impact to poverty reduction
3. Serve as demonstration effect to other MFIs in introducing best practices in insurance, environment and social systems

Investment Description
  • International Finance Corporation (IFC)

Kreditimi Rural i Kosoves (KRK), formerly known as the Rural Finance Project of Kosovo, is a microfinance institution that aims to assist farmers, rural and semi urban micro-entrepreneurs in restoring and developing production capacity and establishing a sustainable, community-based rural credit scheme. Rural Finance Project of Kosovo was established in the year 2000, as an NGO credit fund licensed by the Central Bank of Kosovo. In 2004, KRK was transformed to a Limited Liability Company. Current shareholding of the company include: The European Fund for Southeast Europe (EFSE) - 42.2%; Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO) - 29.3%; Crédit Coopératif - 11.2%; and SIDI, (Solidarité Internationale pour le Développement et l'Investissement) - 17.4%.

Private Actors

Kreditimi Rural i Kosoves (KRK), formerly known as the Rural Finance Project of Kosovo, is a microfinance institution that aims to assist farmers, rural and semi urban micro-entrepreneurs in restoring and developing production capacity and establishing a sustainable, community-based rural credit scheme. Rural Finance Project of Kosovo was established in the year 2000, as an NGO credit fund licensed by the Central Bank of Kosovo. In 2004, KRK was transformed to a Limited Liability Company. Current shareholding of the company include:  The European Fund for Southeast Europe (EFSE) - 42.2%; Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO) - 29.3%; Crédit Coopératif - 11.2%; and SIDI, (Solidarité Internationale pour le Développement et l'Investissement) - 17.4%.

Contact Information

Project Contact: Lulzim Sadrija
CEO, Kreditimi Rural i Kosoves
Telephone No.: +381 38 222 345
Email Address: lulzim.sadrija@krk-ks.com
Office Address: Rr. Rexhep Mala No. 4, Pristina, Kosovo
Website: www.krk-ks.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/