EBRD Approves 5mln Euro Loan to Bosnia's Mikrofin for On-Lending to Micro, Small...

May 2020
Bosnia and Herzegovina, May, 19 2020 - The European Bank for Reconstruction and Development (EBRD) said on Tuesday it has approved a 5 million euro ($5.5 million) loan to Bosnia's Mikrofin for on-lending to local coronavirus-hit businesses.

The loan has been approved as part of the EBRD's response to the Covid-19 pandemic, allowing Mikrofin - the largest non-bank microfinance institution in Bosnia and Herzegovina, to answer the liquidity needs of its micro and small clients faced with decreasing activity, turnover and profitability that leads to payment delays and liquidity issues for the whole economy, the EBRD said in a statement.

The loan will be split in two tranches of 2.5 million euro each, with the second tranche remaining still uncommitted.

"The facility will help Mikrofin to remain an active and effective market player amid COVID-19 pandemic," the statement read, adding the company will also be able to continue commercial lending in line with local peers.

Mikrofin has 80 branches throughout Bosnia, operating total assets under management of 137 million euro and controlling 26% of the country's microfinance market, the EBRD noted.

Source : SeeNews

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