US/EBRD SME - ProCredit Bank Bosnia

Location:

Bosnia and Herzegovina

Project number:

17476

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Status:

Complete

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
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
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

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