EBRD Earmarks €4 Mln for Bosnia Microfinance Industry via MF Banka

In a bid to provide more microfinancing options to companies in Bosnia and Herzegovina, The European Bank for Reconstruction and Development (EBRD) has earmarked a EUR 4 mln loan to MF Banka. By supporting the micro and small enterprises (MSEs) in the area, the EBRD hopes to bolster the local economy. Mikrofin LLC, under whose auspices MF Banka operates, is the largest microfinance institution in the nation and the first to be granted a banking license. The license extends its scope of product offerings to include savings options to client companies, which in turn will generate local deposits that will then support increased lending to local businesses. They will also be able to provide a host of other services like payment options and e-banking – something that cannot be done by other MFIs. The investment will help MF Banka to extend support to the real economy of Bosnia and Herzegovina by offering longer-tenor loans to MSEs in the region. It will also provide a platform for these companies to operate in a commercially sustainable manner by increasing their revenue channels and opportunities. In addition to the loan, nearly EUR 380,000 will be given in the form of technical assistance by EBRD’s Shareholder Special Fund and the Western Balkan Fund.