US/EBRD SME - ProCredit Bank Bosnia


Bosnia and Herzegovina

Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:




PSD disclosed:

15 Apr 1999

Project Description

Second capital increase of DM 0.8 million in Micro Enterprise Bank to increase the capital of the bank to comply with the new capital requirements and to further expand its activities.

Project objectives: The capital increase is required to comply with the requirements of the new Federation of Bosnia and Herzegovina Banking Law and to allow the bank to further expand its activities. The proposed operation will enable MEB to further consolidate its position as a financial institution focused on providing specialist services to private micro and small enterprises in BiH.

Transition Impact

The project aims to:

  • assist transition from unemployment and dependency on humanitarian aid to employment and independence;
  • support the emergence of a private sector by offering tailored loan facilities for MSEs;
  • promote entrepreneurship at grass roots level;
  • have a strong demonstration effect;
  • stimulate competition, improving efficiency and satisfying directly or indirectly the existing credit demand.

The Client

Micro Enterprise Bank (MEB) is a specialist micro and small enterprise finance institution established by the EBRD (28.6%), IFC (28.6%) IMI (International Micro Investitionen AG) (19.0%), FMO (Nederlandse Financierings-Maatschappij voor Ontwikkelingslanded N.V.) (14.3%) and KfW (9.5%) in September 1997. MEB is operating from its Head Office in Sarajevo and 5 branches in Ilidza, Bihac and Tuzla, Mostar and Banja Luka.

EBRD Finance

DM 0.8 million (€0.4 million) equity investment to participate in the capital increase of DM 3.1 million to boost MEB's share capital to DM 8.8 million.

Project Cost

DM 3.1 million (€1.6 million) capital increase. The total EBRD exposure to MEB after this capital increase will be DM 7.55 million (€3.9 million).

Environmental Impact

MEB will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. These provide for the integration of environmental due diligence into MEB's credit appraisal processes and a requirement that borrowers comply, at a minimum, with national and local health, safety and environmental regulations and standards and public consultation requirements. MEB will submit annual environmental reports to the EBRD.

Technical Cooperation

Technical cooperation funding consists of:

  • EUR 1.5 million from the EC to pay IPC under the Management Agreement;
  • DM 400,000 from the Norwegian Government for training of credit officers.

No additional technical co-operation funding will be involved in the proposed operation.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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