€4 million loan to help expand lending in the agricultural sector
The European Bank for Reconstruction and Development (EBRD) is supporting micro and small entrepreneurs (MSMEs) in Bosnia and Herzegovina (BiH) with a €4 million financing provided to Mikrofin LLC, the leading microfinance institution in the country.
The funding will help Mikrofin to further expand its lending in the agricultural sector and broaden its lending activities across Bosnia and Herzegovina.
Despite the relatively low share of financial sector assets, the micro finance sector is an important source of funding for more than 200,000 clients which are not served by local banks.
“This is our second project in support of the development of micro finance in Bosnia and Herzegovina this year. We believe it is very important, since it provides funding for borrowers in vital sectors of the economy, such as agriculture.” said the Head of EBRD in Bosnia and Herzegovina, Ian Brown.
“The partnership with the EBRD will help us strengthen our position in the microfinance market .We are delighted to work with the Bank to develop our portfolio and expand our services. It will help us reach entrepreneurs and farmers in the underserved areas of the country and provide them with much needed financing,” said Mladen Bosnic, CEO Mikrofin LLC
“We are joining forces with Mikrofin to help increase the availability of financing to micro businesses. With our support Mikrofin will be able to provide access to long-term funding and support the development of micro finance in BiH’s economy”, added Henry Russell, EBRD Director for Financial Institutions in the Western Balkans, Belarus, Moldova and Ukraine.
Since the start of its operations in Bosnia and Herzegovina, the EBRD has invested more than €1.7 billion in more than 122 projects in the country to date. The Bank invests in infrastructure development, support for small and medium-sized enterprises and the strengthening of the financial sector.