MICROCAPITAL BRIEF: “Plus” of Bosnia and Herzegovina to Offer Debt Counseling Services, Financial Education to Microfinance Clients in Sarajevo

Formerly known as the Centre for Financial and Credit Counselling, the Association for Responsible Personal Finance Management, a nonprofit debt counseling organization also known as “Plus”, has recently opened an office in Sarajevo, Bosnia and Herzegovina. Plus was created in 2009 in Tuzla, Bosnia and Herzegovina, with the support of several international and local institutions including the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) based in Luxembourg, the government of Switzerland and the United Kingdom’s Department for International Development (DFID), Dutch cooperative Oikocredit, Luxemburg-based investment fund European Fund for Southeast Europe and Swiss investors responsAbility and Blue Orchard.

Plus, which also operates an office in Tuzla, negotiates and prepares debt restructuring and payment plans for microfinance clients. The association’s services are free to debtors and include training programs on household budgeting, selecting financial institutions and features of savings and loan products. As of 2011, 388 individuals with a combined debt of approximately USD 4.7 million had been helped by the center. As of July 2012, Plus reportedly provided financial counseling and mediation services to 900 people, while 2,600 people attended its financial literacy workshops.

By Mihaela Grindeanu, Research Associate

About the European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeast Europe aims to foster 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 was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. 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 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.

About the Association for Responsible Personal Finance Management, “Plus” (formerly the Center for Financial and Credit Counseling): “Plus”, the former Center for Financial and Credit Counseling (CFKS), was established as a nonprofit debt counseling center in 2009 in the Bosnian city of Tuzla with start-up funding from the United Kingdom’s Department for International Development (DFID). Using the model of debt counseling services operating in the United Kingdom, it prepares debt restructuring and payment plans for microfinance clients that are then offered to creditors for approval. The association’s services are free to debtors and also include training programs on household budgeting, comparing financial institution types and the features of savings and loan products. As of July 2012, Plus reportedly provided financial counseling and mediation services to 900 people, while 2,600 people attended its financial literacy workshops. It receives funding support from the United Kingdom’s Department for International Development (DFID), the World Bank’s International Finance Corporation (IFC), Dutch cooperative Oikocredit, Luxemburg-based investment fund European Fund for Southeast Europe and Swiss investors responsAbility and Blue Orchard.

Sources and Additional Resources:

Efse.lu Press Release: “EFSE-funded project expands: Non-profit debt counselling services for over-indebted citizens now also available in Sarajevo”, http://www.efse.lu/Details—2012-07-03-EFSE-funded-project-expands–Non-profit-debt-counselling-services-for-over-indebted-citizens-now-also-available-in-Sarajevo——_nav._siteid.134_entryid.449_dir._likecms.html

MicroCapital.org story, June 21, 2012: “MICROCAPITAL BRIEF: European Fund for Southeast Europe, Azerbaijan Micro-Finance Association to Publish Financial Literacy Booklet”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-azerbaijan-micro-finance-association-to-publish-financial-literacy-booklet/

MicroCapital.org story, March 3, 2012: “MICROCAPITAL BRIEF: Partner Microcredit Foundation, European Fund for Southeast Europe Publish 100k Financial Literacy Guides for Microfinance Clients in Bosnia and Herzegovina”, https://www.microcapital.org/microcapital-brief-partner-microcredit-foundation-european-fund-for-southeast-europe-publish-100k-financial-literacy-guides-for-microfinance-clients-in-bosnia-and-herzegovina/

MicroCapital.org story, October 18, 2011: “MICROCAPITAL BRIEF: Center for Financial and Credit Counseling of Bosnia Offers Debt Mediation, Financial Education to Microfinance Clients”, https://www.microcapital.org/microcapital-brief-center-for-financial-and-credit-counseling-of-bosnia-offers-debt-mediation-financial-education-to-microfinance-clients/

MicroCapital Universe Profile: European Fund for Southeast Europe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

MicroCapital Universe Profile: Center for Financial and Credit Counseling (CFKS), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Center+for+Financial+and+Credit+Counseling

MicroCapital Universe Profile: Department for International Development (DFID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Department+for+International+Development+%28DFID%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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