US/EBRD SME - PROCREDIT BANK BOSNIA

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 3968

Status Complete

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 3968

Status Complete

Location

Bosnia and Herzegovina

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Disclosure date

04 Apr 1997

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Micro Enterprise Bank (MEB) is a specialist micro and small enterprise finance institution to be established with its Head Office in Sarajevo. MEB's initial capital of DM 3.5 million (ECU 1.8 million) will be provided by the EBRD, the International Finance Corporation (IFC) and other interested organisations. The European Commission is to provide a total of ECU 7.5 million of funding for on-lending and technical cooperation.

MEB's three principal objectives are: (i) the provision of financing to private micro and small enterprises (MSEs) in Bosnia and Herzegovina which currently face financing constraints, with a credit requirement typically between DM 2,000 and DM 50,000; (ii) assistance in the deepening of the country's financial system by developing sound micro and small lending techniques and demonstrating to the local banks that micro and small lending operations can be developed into a profitable activity; and (iii) the creation of a sustainable financial intermediary, which in the long run will be managed and owned exclusively by residents of Bosnia and Herzegovina.

Transition Impact

MEB will assist in the transition in Bosnia and Herzegovina from unemployment and dependency on humanitarian aid to employment and independence. The establishment and institutional strengthening of MEB will support the emergence of a private sector in the country by offering tailored loan facilities for MSEs. There will be a strong demonstration effect within the financial sector since currently no financial institution is supplying credit to MSEs. MEB should serve to stimulate competition, improving efficiency and ensuring that this credit demand is satisfied.

The Client

EBRD Finance

The EBRD is proposing to invest DM 1 million (ECU 515,000) in MEB's initial share capital.

Project Cost

MEB's total equity will amount to DM 3.5 million (ECU 1.8 million).

Environmental Impact

MEB will carry out its operations in accordance with the EBRD's Environmental Procedures for Small and Micro Loans. In implementing these procedures, MEB will require its borrowers to comply with national /local health and safety, environmental and public consultation requirements. MEB will submit annual environmental reports to the EBRD.

Technical Cooperation

None

Company Contact

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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