MICROCAPITAL BRIEF: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) Lends $5.4m to Microfinance Institution Mikrofin of Bosnia and Herzegovina

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership that aims to promote growth in developing economies, recently signed a senior loan agreement through which it will disburse EUR 5 million (USD 5.4 million) to Mikrofin, a Bosnia and Herzegovina-based microfinance institution. Mikrofin is primarily active in rural areas and focuses on the agricultural.

FMO is making this loan through its MASSIF fund, an investment fund that FMO manages on behalf of the Dutch Ministry of Foreign Affairs. The term of the loan is for five years with a one-year grace period.

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 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

By Ananya Tiwari, 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 Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) is a Dutch development bank that was founded in 1970. It supports financial institutions and governments through loans, guarantees and other investment promotion activities including local-currency investments. FMO is owned by the Dutch government, which holds a 51-percent stake, alongside commercial banks, trade unions, employers’ associations and individual investors. As of June 2014, FMO reports total assets of EUR 6.4 billion (USD 7.8 billion).

Sources and Additional Resources

[1] FMO Press Release, http://www.fmo.nl/k/n114/news/view/17779/538/on-the-way-to-economic-growth-in-bosnia-and-herzegovina.html

MicroCapital, January 13, 2015, “Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) Syndicates $70m in Loans to BRAC for Small, Medium-Sized Enterprises with Participation from OFID, OeEB, BIO, Actiam, responsAbility,” https://www.microcapital.org/microcapital-brief-nederlandse-financierings-maatschappij-voor-ontwikkelingslanden-fmo-syndicates-70m-in-loans-to-brac-for-small-medium-sized-enterprises-with-participation-from-ofid-oeeb-bio/

MicroCapital, May 30, 2014, 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, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-4m-to-mikrofin-banja-luka-of-bosnia-and-herzegovina-for-on-lending-to-2000-micro-small-enterprises/

MicroCapital Universe Profile: Mikrofin Banja Luka, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrofin+Banja+Luka

MicroCapital Universe Profile, Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Nederlandse+Financierings-Maatschappijvoor+Ontwikkelingslanden+N.V.+%28Netherlands+Development+Finance+Company%2C+FMO%29

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