The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle, has disbursed a senior loan of EUR 5 million (USD 6.8 million) to MF Banka a.d. Banja Luka, a microfinance institution (MFI) in Bosnia and Herzegovina. MF Banja Luka intends to use the funds to expand its lending to micro- and small enterprises. The funds are also expected to bolster MF Banja Luka’s “long-term” lending capacity.
MF Banja Luka was established in 2007 and is majority-owned by Mikrofin Banja Luka, an MFI in Bosnia and Herzegovina. 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. While Mikrofin does not offer deposit accounts, MF Banka a.d. Banja Luka does accept deposits. 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) was established in 2005 by Kreditanstalt für Wiederaufbau (KfW), a German development bank; with financial support from the German Federal Ministry for Economic Cooperation and Development (known by its German acronym BMZ), which supports economic development both in Germany and abroad, and the European Commission, the executive body of the European Union. 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 adviser. 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), a non-governmental organization that certifies that social investment vehicles actually invest as advertised.
Sources and Additional Resources
[1] European Fund for Southeast Europe: EUR 5 Million Loan from EFSE Enhances MF Banka’s Long-Term Lending Capabilities
MicroCapital, February 11, 2014, European Fund for Southeast Europe (EFSE) Loans $4m to Komercijalna Banka Banja Luka of Bosnia and Herzegovina
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, October 14, 2012, MF Banka Receives $5.2m from European Bank of Reconstruction and Development for Small Businesses in Bosnia, Herzegovina
MicroCapital, July 10, 2012, European Fund for Southeast Europe Loans $8m to MF Banka a.d. Banja Luka, Microcredit Foundation EKI of Bosnia and Herzegovina
MicroCapital Universe Profile: Mikrofin Banja Luka
MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: EU Guaranteeing $113m to Support $490m in Lending by EBRD to MSMEs in Eastern Europe, North Africa, Western Asia
- MICROCAPITAL BRIEF: Mi-Bospo of Bosnia and Herzegovina Borrowing $2.2m from Grameen Credit Agricole Foundation for Microfinance Lending
- SPECIAL REPORT: Investors, MFIs Continue to Wrestle with Sustainable Finance Disclosures Regulation (SFDR) #EMW2023
- SPECIAL REPORT: Yikri of Burkina Faso Wins $110k European Microfinance Award for Progress Toward Food Security #EMW2023
- MICROCAPITAL BRIEF: CEB, EU Expand Roma Housing Microfinance, Financial Inclusion Program to Bulgaria