The Crimson Finance Fund (CFF) increases access to a range of short-term working capital products for small and medium enterprises (SMEs) in all sectors of the Kosovo economy, with a special focus on helping businesses owned by women and other marginalized groups. The goal of the program is to expand assistance to the financial sector in order to address a gap in short-term working capital financing.

The Crimson Finance Fund, registered locally as a non-banking financial institution, addresses the needs of riskier but still viable borrowers, like entrepreneurs, farmers, processors, women, and minorities with less experience and fixed asset collateral.  CFF addresses the needs of those not adequately served by other financial institutions. 

USAID initially provided $700,000 to CFF for loans, followed by an additional $1.5 million in 2010 to provide critical missing financial products to the agricultural sector. These funds are primarily being used to provide working capital credit to enable farmers to lease agricultural equipment.

The Norwegian Government initially provided $1,744,960 for start-up costs and a low interest loan, followed by an additional $1 million loan in 2010. In 2013, the Norwegian Government granted CFF an additional $1.1million for loans to minority business owners in Northern Kosovo. 

Results:

• To date, 310 loans and leases valued at $19.1 million have been disbursed with combined USAID and Norwegian funds;
• Over 28% of lending has been disbursed to the agricultural sector;
• Over 28% of loans were disbursed to women and minority-owned firms.

Project Duration:                July 2008  – December 2014 

USAID Contact:                   Dardane Peja

Implementing Partner:       Crimson Capital