The objective of ChaBaL.EU is the development and piloting of innovative microfinance services and products that help micro and small enterprises (MSE) access the financial market within the EU-15. These financial services confront the implications of the restructuring process in regions that have faced dramatic economic changes. Additionally, the project aims at changing the perception of microfinance instruments in the EU-15 countries.
Thus it particularly applies at the level of administration and social partners who are essential for the introduction of an innovative market-oriented financing system.
“ChaBaL.EU” is short for “using the Character Based Lending approach as a tool for the development of a market oriented MSE-financing system in the EU”. The so-called character based lending approach is a methodology that is successfully used in the context of Microfinance in developing and transition countries. It is now beeing introduced into the EU-15 countries by the European Union who applies this approach as a tool for supporting regions under structural changes. In order to foster the north-south-dialogue, external expertise is provided from transition countries like Albania, Bosnia-Herzegovina or Croatia, where character based lending and other innovative methodologies have been successfully implemented.
The ChaBaL.EU-project unites profound Microfinance know-how through the special expertise of 10 different partner institutions coming from 4 EU member states. The institutions involved include universities, ministeries, local business promotion agencies, microfinance provider, research groups and development agencies. A schedule of activities has been prepared to specify the milestones to achieve over a period of two years. The European Union co-finances this project and thus contributes to promote a sustainable approach to Microfinance in the EU.
