EBRD SUPPORTS WOMEN ENTREPRENEURS IN BOSNIA AND HERZEGOVINA

Kosovapress News /Kosovapress
December 22, 2007
Sarajevo, 22 December 2007 (Kosovapress) Time 09:19

The European Bank for Development and Reconstruction (EBRD) is lending EUR 3 million to Mikrokreditna Organizacija MI-BOSPO, one of the leading microfinance institutions in Bosnia and Herzegovina (BiH), to enable women-owners of micro and small enterprises to gain more access to finance to start up or expand their businesses.
MI-BOSPO was established in 1996 as a non-governmental organisation and in December 2000 it was registered as a microfinance institution licensed to provide financial support to low-income women in the northeastern part of BiH. Through its network of 24 offices, MI-BOSPO serves more than 27,000 clients both in urban and rural areas.
The finance falls under the €75 million EBRD Micro, Small and Medium-Sized Enterprises Finance Framework for the Western Balkans and Croatia, which aims to facilitate access to finance for smaller business clients.

MI-BOSPO’s loan will be complemented by up to a EUR 300,000 in technical assistance from donor countries under the EBRD - Western Balkans Fund. This technical assistance support will be used to facilitate the company’s current restructuring from a non-profit organisation into a commercial organisation, reflecting a new law on micro-credit organisations passed in BiH. The assistance will focus on strengthening internal information technologies, audit/control processes, risk management, and MSE lending-specific processes.

Giulio Moreno, the EBRD Head of Office in Sarajevo, said that 2007 was a challenging, but successful year for the microfinance sector in Bosnia and Herzegovina. Firstly the new microfinance legislation came to force and as a result microfinance institutions now come under the umbrella of banking supervision. Secondly, the microfinance sector has increasingly been able to attract international commercial investors. In the coming year, the Bank will continue to provide investments in the microfinance sector, including MI-BOSPO, said Mr Moreno.

Nejira Nalic, MI-BOSPO’s Director, stressed: ‘It is MI-BOSPO vision to become the financial services provider of choice for low-income women entrepreneurs in Bosnia and Herzegovina. MI-BOSPO recognizes the efforts, skills and potential of women who continuously strive to improve the living standards of their families. The EBRD loan will support MI-BOSPO in serving even more clients and particularly to support the underserved market for finance to women entrepreneurs who need better services.'
So far, the Bank has extended loans to Mikrofin, EKI, Sunrise and Partner Across its countries of operations, the EBRD has committed over EUR 947 million to 122 financial institutions to support more than 3 million small and micro enterprises.

The following countries are donors to the EBRD-Western Balkans Fund: Austria, Canada, Czech Republic, Finland, Hungary, Ireland, Luxembourg, Netherlands, Norway, Poland, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom.