The European Bank for Reconstruction and Development (EBRD) has agreed to a €4 million senior loan for Mikrofin Banja Luka. This funding is intended to assist micro, small and medium sized enterprises (MSMEs) led by women across Bosnia and Herzegovina. The deal is part of the second phase of the Western Balkans Women in Business programme. It aims to help women start and grow their companies, especially those living outside the country’s main cities.
The loan package is designed to tackle specific challenges that female business owners often encounter. These include high collateral demands and a lack of established credit history. By providing this capital, the EBRD hopes to help more women formalise their business operations. Mikrofin, which is the largest microfinance institution in the country, will also receive technical help to improve its services for female clients.
Risk sharing for this transaction is provided by the EBRD Shareholder Special Fund. This fund offers first loss cover and technical assistance to help lenders reach more women effectively. Bosnia and Herzegovina currently has a significant gender gap regarding people in work. Improving access to credit for women is seen as a vital step for job creation and making the local economy more stable.
EBRD Vice President Matteo Patrone said: “Women entrepreneurs play an essential role in local economies, yet they often face greater obstacles in accessing finance. Through our partnership with Mikrofin, and with the support of our shareholders, we are helping to unlock opportunities for women led businesses across Bosnia and Herzegovina, especially at community level. This investment reflects the EBRD’s longstanding commitment to inclusive growth and to strengthening the private sector in the Western Balkans.”
Mikrofin Director Milena Haneš said: “Mikrofin is excited to continue cooperation with the EBRD through the Women in Business programme. Female clients have always been a focus for Mikrofin, representing around 40 per cent of our clients. Implementation of this Women in Business project, and the related technical assistance, will give Mikrofin the opportunity to improve its lending practices and to create better lending options for female borrowers.”
Since 1997, Mikrofin has grown to operate 110 branches nationwide. The organisation has a long history of working with the EBRD on green energy and emergency funding projects. To date, the EBRD has invested more than €3.4 billion into 260 different projects across Bosnia and Herzegovina.
