BANJA LUKA (Bosnia and Herzegovina), October 24 (SeeNews) – The European Fund for Southeast Europe (EFSE) said on Monday it is extending a 3.5 million euro ($3.8 million) subordinated loan to MF Banka a.d. Banja Luka to support Bosnia and Herzegovina’s micro and small enterprises.
Earlier on Monday, EFSE announced it will lend 6 million euro to Bosnian microcredit company Mikrofin to increase support for agricultural enterprises in the country.
MF Banka is part of Mikrofin Group, which has been partner of the EFSE since its inception. So far MF Banka has on-lent EFSE funds to over 1,000 micro- and small enterprises in rural Bosnia and Herzegovina, EFSE said in a statement.
“The new subordinated loan will help MF Banka to grow its business and increase its outreach to Bosnia and Herzegovina’s micro and small enterprises, one of the main business sectors we seek to bolster in the regions we serve”, EFSE board chairman Christoph Tiskens said in the statement.
MF Banka Banja Luka began operations under this name in July 2010 after the acquisition of the former IEFK Bank by MCC Mikrofin Banja Luka. It has an important market share in the segment of micro and small enterprises, and is serving more than 10,000 clients through a network of 19 branches.
The European Fund for Southeast Europe (EFSE) was initiated by German development bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey.
($=0.918634 euro)