MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) to Provide Technical Assistance, $2.8m Loan to Microcredit Foundation MI-BOSPO of Bosnia and Herzegovina

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently announced it has loaned Microcredit Foundation MI-BOSPO, a nonprofit microfinance institution in Bosnia and Herzegovina, EUR 2.5 million (approximately USD 2.8 million).

MI-BOSPO will use the proceeds for agricultural and other rural development in Bosnia and Herzegovina, a subsector in which MI-BOSPO recently has been expanding. Along with the loan, EFSE will sponsor the training of MI-BOSPO’s loan officers on agricultural lending. EFSE Board Chairperson Monika Beck noted that “MI-BOSPO is one of EFSE’s oldest partners, and our ongoing cooperation underscores our mutual goals. The company’s plan to increase support in agricultural and rural areas dovetails with our mission to foster economic development and prosperity in the Southeast Europe region”.

As of 2014, MI-BOSPO had assets totalling USD 27.7 million, a gross loan portfolio of USD 24.7 million, zero deposits, 2.13 percent return on assets, 5.11 percent return on equity and 19,125 borrowers. MI-BOSPO was founded in 2000 by the Bosnian Council for Aid, which is known as BOSPO. As of 2015, EFSE had an investment portfolio of EUR 895 million (approximately USD 1 billion).

By Imke Herholdt, Research Associate

About European Fund for Southeast Europe (EFSE)

The Luxembourg-based European Fund for Southeast Europe (EFSE) focuses
on the development of local financial sectors in Southeast Europe and
parts of Central Asia by providing “long-term” funding for micro- and
small enterprises as well as private households via partner retail
institutions. EFSE also operates the EFSE Development Facility, which
provides technical assistance, consulting and training services to
support capacity building within these institutions. EFSE was
established in 2005 by German Development Bank Kreditanstalt für
Wiederaufbau (KfW), with the financial support of the German Federal
Ministry for Economic Cooperation and Development (which is also known
by its German acronym BMZ) and the EU’s European Commission. The fund 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. EFSE operates in 16 countries: Albania, Armenia,
Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia,
Kosovo, Moldova, Montenegro, Romania, Serbia, Ukraine, Turkey and the
former Yugoslav Republic of Macedonia.  As of 2015, EFSE holds a
microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an
NGO that certifies that social investment vehicles actually invest as
advertised. As of 2015, EFSE reported a gross loan portfolio of EUR 879
million (approximately USD 992 million).

About Microcredit Foundation MI-BOSPO

Microcredit Foundation MI-BOSPO, based in Tuzla, Bosnia and Herzegovina, is a microfinance institution that provides loans and non-financial services to entrepreneurs, predominately women. MI-BOSPO was founded in December 2000 by the Bosnian Council for Aid, which is known as BOSPO. It has a network of 24 offices, predominantly in the north-east of the country, with approximately 142 staff as of 2014. According to the US-based non-profit Microfinance Information Exchange (MIX), MI-BOSPO had assets totalling USD 27.7 million, a gross loan portfolio of USD 24.7 million, zero deposits, 2.13 percent return on assets, 5.11 percent return on equity and 19,125 borrowers, of which nearly 70 percent were women, as of 2014.

Sources and other resources
[1] Information provided directly to MicroCapital by European Fund for
Southeast Europe (EFSE) 
[2] Microcredit Foundation MI-BOSPO: Promoting female entrepreneurship
in Bosnia and Herzegovina
[3] Microfinance Information Exchange: MI-BOSPO
[4] Women’s World Banking: About Microcredit Foundation MI-BOSPO
[5] MicroCapital Universe Profile: EFSA
[6] MicroCapital Universe Profile: Mikrokreditna Fondacija Mi-Bospo
[7] Mikrokreditna Fondacija MI-BOSPO

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