Project detail - MIKROFIN LLC BANJA LUKA

Who is our client

Mikrofin is the largest Microfinance Institution in Bosnia and Herzegovina and has a focus on the agricultural sector. The 'Association of Citizens Mikrofin' is the shareholder of Mikrofin, and receives its funding from CARE foundation. Mikrofin's mission is to provide appropriate financial services to economically active, low-income people that can use them to generate profit. The goal is to make it possible for such people to become economically independent.

Funding objective

By supporting Mikrofin, FMO helps facilitate access to finance for micro entrepreneurs, mainly in the agricultural sector. By providing finance to micro clients, Mikrofin promotes economic growth amongst the low-income population in a country with an unemployment rate of 40%. These small entrepreneurs have an average loan portfolio of EUR 1,300. Environmental risk associated with supporting such entrepreneurs is low; social risk, on the other hand, is mitigated through implementation of Client Protection Principles. These are well-guarded by the institution itself and by the supervisor.

Why we fund this project

By providing long-term finance to an institution operating in a struggling economy, FMO enables Mikrofin to continue promoting access to finance for micro entrepreneurs. With its focus on micro clients in the agricultural sector, Mikrofin promotes inclusive finance. By providing a EUR 5 million loan, FMO supports approximately 3,800 clients.