Ace Business Desk – European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are supporting small businesses in Bosnia and Herzegovina to bounce back after the 2024 floods by providing them much-needed funding for repairs and new investments.
- EBRD provides a loan of up to €2 million to Mikrofin d.o.o. Banja Luka
- Mikrofin to lend to MSMEs in regions impacted by the floods in 2024
- The loan addresses the need for continued access to financing to MSMEs, mostly based in the flood-affected regions
Recognising the problematic situation that local businesses faced after the floods, which had affected their facilities, operations and cash flow, the bank is providing a loan of up to €2 million to a local microfinance institution, Mikrofin d.o.o. for on-lending to small businesses, especially those based in flood-affected regions.
The investment is backed by the European Fund for Sustainable Development Plus (EFSD+) through a guarantee. The EFSD+ implements a range of risk-sharing instruments within its financial inclusion program to assist businesses operating in more challenging markets.
Stela Melnic, EBRD Director for Bosnia and Herzegovina, said: “The devastating floods that struck Bosnia and Herzegovina brought immense tragedy, claiming lives, triggering landslides, and causing extensive damage to homes, infrastructure, and livelihoods in municipalities such as Kreševo, Fojnica, Kiseljak, Konjic and Jablanica. In response to this crisis, the EBRD acted swiftly, assisting the government of Bosnia and Herzegovina in preparing and applying to the EU Solidarity Fund while mobilising its own resources. The loan we have signed with Mikrofin is another important step in providing those affected by the floods with continued access to much-needed financing. The EBRD remains steadfast in its commitment to fostering resilience and recovery across its countries of operation, ensuring that no community is left behind in times of adversity.”
Milena Haneš, Mikrofin Director, said: “Mikrofin operates in the regions affected by floods, having clients, offices, and staff members in municipalities Kreševo, Fojnica, Kiseljak, Konjic and Jablanica. We are happy to participate in implementing the EBRD project and to assist the local population in recovering their business soon, providing new financing.”
In 2024, the European Bank for Reconstruction and Development (EBRD) invested €213 million across 23 projects in Bosnia and Herzegovina that are helping shape the country’s economic and sustainable growth. €90 million is dedicated to green projects, supporting energy efficiency, renewable energy, and decarbonisation efforts. These investments reflect the bank`s commitment to empowering Bosnia and Herzegovina’s transition to a greener and more resilient economy.
The EBRD has invested more than €3.3 billion in 241 projects in Bosnia and Herzegovina since it began operating in the country in 1996.
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