Proparco and MKD Mikrofin together strengthen the economy of Bosnia and Herzegovina

Mikrofin has a network of currently 94 branches throughout the country, with the plan to grow branch network to more than 100 offices by the end of 2023, and working with Mikrofin will allow Proparco to extend finance where it often is needed most.

The micro and small enterprise segment is a vibrant part of the economy of Bosnia and Herzegovina and the country’s engine of growth and job creation.

The loan is complemented by technical cooperation support financed by Proparco to Mikrofin to conduct “CP Pathway", the client protection certification program designed by the Social Performance Taskforce.

Mr. Stéphane Froissardey, Proparco’s Director for Eurasia, said: “This is our first project in Bosnia and Herzegovina and we hope the beginning of a fruitful partnership with the Bosnian private sector. Supporting Mikrofin, an important microfinance institution in the country, is perfectly in line with our strategy to support SMEs and entrepreneurship in the country, and beyond, in the region.”

Mrs. Milena Haneš, Director of Mikrofin said: “Mikrofin is entering into it's first loan agreement with Proparco, and we are very delighted to be Proparco's first partner institution in Bosnia and Herzegovina. We are looking forward to continuing our work towards the same goal, which is providing support to entrepreneurs. The EUR 10 million loan will enable Mikrofin to extend new loans to micro and small entrepreneurs whom we consider to be the the most inventive and productive segment of BiH economy. We are also very grateful to Proparco for the technical cooperation support, which will be used to conduct an external assessment and certification of our client protection practices with the aim to better understand and implement best global client protection practices and principles.”