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A boost for micro enterprises in Bosnia
EBRD provides €8 million loan to MIKROFIN
Micro and small enterprises are set to benefit from an €8 million EBRD loan to
MIKROFIN for on-lending. MIKROFIN is the largest non-bank microfinance
institution in Bosnia and Herzegovina and is currently operating in the
northern parts of Republika Srpska and the Federation of Bosnia and
Herzegovina.
The EBRD loan falls under the recently established Micro, Small and Medium
Sized Enterprises Finance Framework for the Western Balkans and Croatia which
aims at facilitating access to finance for smaller business clients. It will
be complemented by a tailor-made technical assistance programme to assist
MIKROFIN in its transformation into a shareholding company and its adaptation
to the commercial sector, reflecting a new law on microcredit organisations
recently passed by the National Parliament of RS.
Olivier Descamps, EBRD Business Group Director, said MIKROFIN is an important
institution that is helping entrepreneurs across Bosnia and Herzegovina to
gain more access to finance to build or expand their businesses. The EBRD’s
significant experience in the microfinance sector will help transform MIKROFIN
into a competitive institution that will ultimately benefit entrepreneurs
across BiH, he added.
MIKROFIN was initially established with World Bank funding as a not-for-profit
post-war recovery project to disburse micro and small loans. The institution,
which was registered in accordance with the law on microcredit organisations
in 2001, offers a variety of individual loans such as agro loans, quick loans,
home improvement loans, and business loans ranging from €255-15,338
(equivalent). The business plan foresees a strong expansion and the
transformation into a countrywide commercial micro credit company within the
next 3-5 years.
Aleksandar Kremenovic, Director of MIKROFIN, said: “This loan and the
cooperation with the EBRD will enable MIKROFIN to start the transformation
process as well as ensure funding to meet the needs of our new clients but
also improve the quality of services and products for more than 27,000
existing clients”.
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