Project Experience


Downscaling: Northern Caucasus MSME Development Finance Project, since 2009


The Northern Caucasus MSME Development Financing Component is an institution building project implementing lending to micro, small and medium enterprises (MSME’s) in the North Caucasus branch networks of two leading banks in retail and MSME lending in the Russian Federation. The Programe is financed by the European Bank for Reconstruction and Development (EBRD). 

The project has a twofold impact. It provides a stable source of financing to the MSME sector in the North Caucasus region, and it strengthens the financial sector/banks, building the skills and giving them the tools to make MSME lending a profitable business in the difficult operating environment of the region.

LFS renders consultancy services to the Partner Banks in setting up new lending departments and implementing best practice MSME lending procedures first in the Republic of North Ossetia-Alania, and then in expanding the new business into other regions, in particular Stavropol krai and Kabardino-Balkaria.

The Technical Assistance is financed by the European Union.