EBRD and EU support access to finance for MSMEs in Bosnia and Herzegovina

• EBRD provides €20 million portfolio risk-sharing facility to ProCredit Bank d.d. in Bosnia and Herzegovina
• Facility to support up to €40 million in new lending to MSMEs, including women-led, youth-led and green businesses
• Transaction backed by the EU under the EFSD+ programme

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are strengthening access to finance for micro, small and medium-sized enterprises (MSMEs) in Bosnia and Herzegovina by supporting a new portfolio risk-sharing facility with ProCredit Bank d.d.

The EBRD is providing an unfunded portfolio guarantee of up to €20 million, covering 50 per cent of the credit risk on a newly originated MSME loan portfolio of up to €40 million. The facility is expected to significantly expand ProCredit Bank’s capacity to lend to underserved segments of the economy, from very small businesses and companies outside major urban centres to firms led by women and young entrepreneurs.

The project is supported by EU first-loss risk cover under the European Fund for Sustainable Development Plus (EFSD+), helping to de-risk lending and unlock additional private-sector financing. The transaction will also help to increase the share of green investments in the country, with at least 25 per cent of the EBRD-supported portfolio going to finance projects aligned with the Bank’s Green Economy Transition criteria.

Stela Melnic, Head of the EBRD in Bosnia and Herzegovina, said: “MSMEs are the backbone of the economy in Bosnia and Herzegovina, yet access to finance remains a key constraint on their growth. Through this new risk-sharing facility with ProCredit Bank, we are helping to unlock fresh lending to businesses that drive employment, innovation and resilience, while supporting greener and more inclusive economic development.”

Amir Salkanović, Chairman of the Management Board, ProCredit Bank, said: “Access to finance in Bosnia and Herzegovina is still not evenly distributed, particularly for micro and small businesses, companies outside major urban centres, and entrepreneurs in early stages of development. This type of risk-sharing structure allows us to deliberately expand into these segments and provide support where it is most needed. Our focus remains unchanged, financing sustainable, real-sector projects and acting as a long-term partner to the domestic economy.”

ProCredit Bank d.d. Bosnia and Herzegovina is a long-standing EBRD partner and a leading lender to MSMEs, with a strong focus on responsible banking and sustainable development. By sharing risk and providing capital relief, the facility will enable the bank to channel additional resources into productive sectors of the economy and improve access to finance for businesses that often face structural barriers when seeking credit.

The EBRD is a long-term partner of Bosnia and Herzegovina and a major institutional investor in the country, supporting private-sector development, financial resilience and the transition to a greener economy. Since beginning operations in Bosnia and Herzegovina, the EBRD has invested more than €3.4 billion in 265 projects, supporting sustainable infrastructure, the private sector and economic resilience