Source: European Fund for Southeast Europe (EFSE).
Original press release available here.
FRANKFURT, GERMANY & TUZLA, BOSNIA AND HERZEGOVINA, August 6 – The European Fund for Southeast Europe (EFSE), one of the largest microfinance investment funds worldwide, has granted a loan of EUR 10 million (USD 15 million) to Partner Microcredit Foundation (Partner), Tuzla, Bosnia Herzegovina (BiH), one of the leading microfinance institutions in BiH. The loan will be used by Partner to on-lend to micro and small enterprises (MSEs) in BiH.
Ms. Sylvia Wisniwski, Chief Operating Officer of EFSE, said: “The loan to Partner will enlarge the financial resources of the organisation and help expand its lending activity. This, in turn, will significantly increase the outreach of EFSE in BiH, providing additional refinancing for more than 6,000 new loans to MSEs, and assist in satisfying growing demand for access to finance.”
Mr. Senad Sinanovi, Director of Partner, commented: “The partnership between EFSE and Partner will develop further in the future as Partner’s plan to become a for-profit commercial organisation progresses. This investment confirms the confidence that a respected institution like EFSE has in Partner.”
This latest EFSE loan is a continuation of the Fund’s strong support for the micro enterprise sector in BiH. The Fund’s support not only includes financial investments but also complementary non-financial assistance – including technical assistance, consulting and training – provided to the partner lending institutions (PLIs) by the Fund’s trust fund, the EFSE Development Facility. This allows for capacity building with the aim to increase the outreach of PLIs to the Fund’s target group, ultimately benefiting the entrepreneurs across BiH. Partner has received support from the EFSE Development Facility in the areas of
lending efficiency as well as social and environmental monitoring.
As of March 31, 2008, the Fund has extended loans to 17 Bosnian and Herzegovinian PLIs, including the country’s leading commercial banks, microfinance banks and microcredit organisations. The Fund is a leading creditor of the microfinance sector in BiH. EFSE’s outstanding investment portfolio in BiH amounts to EUR 131.3 million (USD 197 million), refinancing more than 23,000 outstanding loans to MSEs and low-income private households at present.
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