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EBRD lending 4 mln euro to Bosnia's Mikrofin to back private businesses

Author Maja Garaca
EBRD lending 4 mln euro to Bosnia's Mikrofin to back private businesses License: Creative Commons CC0

SARAJEVO (Bosnia and Herzegovina), November 14 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said it is providing Bosnia's Mikrofin with a 4 million euro ($4.7 million) loan for on-lending to local private businesses.

Mikrofin, the largest non-bank microfinance institution in Bosnia and Herzegovina, currently has a network of 75 branches throughout the country and working with it will allow the EBRD to widen and deepen its outreach to extend finance where it is often needed most, the bank said in a statement on Monday.

The loan is complemented by technical cooperation support financed by the EBRD Shareholder Special Fund to support Mikrofin with the development of the methodology and implementation of the new IFRS 9 standard, in order for the microfinance institution to comply fully with the International Financial Reporting Standards (IFRSs).

The adoption of the new IFRS standard will ensure that Mikrofin maintains access to funding from external lenders and send a strong signal to the whole financial sector, the EBRD said.

"Our goal is to strengthen the real economy in the country by facilitating access to finance for those vibrant enterprises which will drive future growth and prosperity", Ian Brown, EBRD associate director, head of Bosnia and Herzegovina, said.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has invested more than 2 billion euro in over 140 projects in the country. The Bank focuses on supporting restructuring and expansion of the local private sector, forging closer links with wider regional markets and promoting a more efficient and sustainable use of resources.

($=0.854911 euro)