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Bosnia and Herzegovina: A loan to a key leader in microfinance
Project
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Signature date
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Location
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Bosnia and Herzegovina
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Financing tool
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Financing amount (Euro)
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10013000
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Financing details
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EUR 10m loan and EUR 13,000 for technical assistance
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Customer
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Microfinance Company MIKROFIN d.o.o. Banja Luka
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Type of customer
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Microfinance
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Country of headquarters
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Bosnia and Herzegovina
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Project number
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PBA1000
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Environmental and social ranking
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IF-C
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco has allocated a loan to an important microfinance institution in the country, Mikrofin. It is Proparco’s first operation in the country.
Client presentation
The leader on the microfinance market in Bosnia, MKD MIKROFIN d.o.o. Banja Luka (Mikrofin) started as a microfinance program set up by the NGO Care International in the post-war context of the Balkans in the 1990s. It targets micro-borrowers and Bosnian microenterprises, in particular in the agriculture sector, the target sector which accounts for 26% of its portfolio. The MFI serves 62,000 borrowers, with 36% women. It has a portfolio of EUR 147m and deploys its services via a network of 84 branches, including 60 in rural areas.
Project description
The project involves the allocation of a EUR 10m senior loan to the Bosnian microfinance institution Mikrofin to support the development of its loan portfolio.
The client has received technical assistance through an expert directly recruited by Proparco for capacity building on the issue of client protection (and to obtain an official certification) for an amount equivalent to almost EUR 13,000.
Project impact
The main expected impacts of the project are as follows:
- Access to a microcredit for 1,382 microentrepreneurs
- 22 direct jobs and some 401 indirect jobs supported.
The project will contribute to SDGs 1 (“No poverty”), 8 (“Decent work and economic growth”) and 10 (“Reduced inequalities”).