This project was approved as part of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery the Bank's President granted a deviation from the ordinary timelines for PSD disclosure as set out in Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.
Provision of a senior loan of up to EUR 5 million under the Resilience Framework in favour of Mikrofin d.o.o. Banja Luka (the "company"), a limited liability company incorporated in Bosnia and Herzegovina. The loan will be split in two equal tranches of EUR 2.5m each with Tranche 2 uncommitted.
The proceeds of the Bank's investment will be used for sub-lending to eligible sub-borrowers in accordance with the Policy Statement.
ETI score: 70
The project will contribute to ensure resilience and preserve competition in the financial sector in BiH economy.
Primary quality - Resilient: The facility will help Mikrofin to remain an active and effective market player amid COVID-19 pandemic.
Secondary quality - Competitive: The facility will enable Mikrofin to continue commercial lending in line with comparable microfinance sector participants.
Mikrofin is the largest microfinance institution in BiH in terms of total assets with a balance sheet of EUR 137m and a market share of 26%. Mikrofin operates 80 branches throughout BiH. It is 100% owned by the Association of Citizens "Mikrofin".
EBRD Finance Summary
Total Project Cost
Covid-19 crisis response allowing Mikrofin to answer the liquidity needs of its micro and small clients that are experiencing a decrease in activity, turnover and profitability leading to payment delays and liquidity issues for the whole economy.
Environmental and Social Summary
Categorised FI (ESP 2019). Mikrofin is an existing client and its performance to date for existing exposures has been satisfactory. Mikrofin will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the EBRD E&S Exclusion List, ensure that appropriate credit and risk management staff undertake the Bank's on-line E&S E-learning training for FIs and submit annual E&S reports to the Bank. Sub-borrowers financed through Mikrofin's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Company Contact Information
+387 51 230 343
+387 51 234 210
MKD Mikrofin Vase Pelagica 22 78000 Banja Luka Bosnia and Herzegovina
PSD last updated
19 May 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.