Second €6 million loan to strengthen lending capacity of key microfinance institution
The EBRD is providing a new €6 million loan to Mikrokreditna organizacija EKI, the third largest microfinance institution in Bosnia and Herzegovina (BiH), to help EKI expand its lending activities and further develop the organization.
The loan, which will be used by EKI to on-lend finance to entrepreneurs, falls under the €75 million EBRD Micro, Small and Medium Sized Enterprises Finance Framework for the Western Balkans and Croatia, which aims at facilitating access to finance for smaller business clients.
The EBRD extended its first €6 million loan under this framework in September 2006, helping EKI to increase its area of operations and the number of clients it serves.
Both transactions were complemented by an estimated €300,000 technical assistance programme from the Western Balkan Multi-Donor Fund*. This technical assistance will be used to facilitate EKI’s transformation into a commercial microfinance company. The funds are being used to focus on strengthening internal audit/control processes, risk management, product development as well as training of middle and senior management.
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