MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $4m to Mikrofin Banja Luka of Bosnia and Herzegovina for On-lending to 2,000 Micro-, Small Enterprises

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle, has disbursed a senior loan of EUR 3 million (USD 4.1 million) to microfinance institution Mikrofin Banja Luka of Bosnia and Herzegovina to increase the company’s lending capacity and expand loan services to approximately 2,000 micro- and small enterprises in the country. The terms of the loan have not been released.

Mikrofin was established in 1997 and reported total assets of BAM 180 million (USD 126 million), a gross loan portfolio of BAM 137 million (USD 96 million), 64 branches and 44,700 customers as of March 2014. As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion).

By Meraj Husain, Research Associate

About Mikrofin Banja Luka

Mikrofin Banja Luka, established in 1997, is a microfinance institution based in Bosnia and Herzegovina. It aims to “provide appropriate financial services to economically-active, low-income people that can make a profit and make it possible for them to become economically independent.” Mikrofin has a majority stake in MF Banka a.d. Banja Luka, an MFI in Bosnia and Herzegovina that was established in 2007. As of March 2014, Mikrofin reported total assets of BAM 180 million (USD 126 million), a gross loan portfolio of BAM 137 million (USD 96 million), 64 branches and 44,700 customers. While Mikrofin does not offer deposit accounts, MF Banka a.d. Banja Luka does accept deposits.

About European Fund for Southeast Europe (EFSE)

The European Fund for Southeast Europe (EFSE) is a Luxembourg-based microfinance investment vehicle that was established in 2005 by Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank, with financial support from the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung) and the European Commission of the EU. EFSE seeks to aid economic development in southeastern Europe and parts of central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion). As of 2013, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

Sources and Additional Resources

[1] European Fund for Southeast Europe: EFSE Enables Mikrofin to Finance Over 2,000 New MSE Loans

MicroCapital, May 25, 2014, Partner Microcredit Foundation of Bosnia and Herzegovina Borrows $4m from European Fund for Southeast Europe (EFSE) for Lending to Micro, Small Enterprises (MSEs)

MicroCapital, February 11, 2014, European Fund for Southeast Europe (EFSE) Loans $4m to Komercijalna Banka Banja Luka of Bosnia and Herzegovina

MicroCapital, October 31, 2013, European Fund of Southeast Europe (EFSE) Loans $31m to Komercijalna Banka Beograd of Serbia, Microfinance Institution Patria Credit of Romania

MicroCapital, July 17, 2013, European Fund for Southeast Europe (EFSE) Loans $9.3m to Mikrofin Banja Luka, MF Banka of Bosnia and Herzegovina for Micro- and Small Enterprise (MSE) in Rural Areas

MicroCapital Universe Profile: Mikrofin Banja Luka

MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)

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