The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently notified MicroCapital that it has opened a EUR 1.5 million (USD 1.9 million) credit line for Mikrokreditna Fondacija Mi-Bospo, a microlender in Bosnia and Herzegovina (BiH) that loans exclusively to women [1]. The UK-based European Bank for Reconstruction and Development (EBRD) will facilitate an additional loan of EUR 1.5 million (USD 1.9 million) to Mi-Bospo. In conjunction with the funding, EFSE and EBRD will provide the microlender with technical assistance relating to product development, marketing and operational efficiency [2].
As of March 2013, Mi-Bospo reported total assets of USD 21 million, a gross loan portfolio of USD 18.7 million, approximately 14,700 active borrowers, return on assets (ROA) of 1.34 percent and return on equity (ROE) of 2.66 percent. The institution does not accept deposits.
As of March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of March 2013, EFSE holds a label from Luxembourg Fund Labeling Agency (LuxFLAG), an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
In 2012, EBRD disbursed EUR 164 million (USD 217 million) to 12 projects in BiH [3]. During the same year, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects region-wide.
By Jennifer Young, Research Associate
About Mikrokreditna Fondacija Mi-Bospo
Mikrokreditna Fondacija Mi-Bospo was established in 1996 as a microcredit research program of Bospo, an NGO based in Bosnia and Herzegovina (BiH) that offers educational, legal and psychosocial services. Mi-Bospo became registered as an independent microcredit institution in 2000. The institution provides women with access to agricultural, business, housing and multipurpose loans. In 2011, Mi-Bospo launched the Women’s Business Network (WBN) funded with USD 1.5 million from US Agency for International Development (USAID), a government agency that provides international economic and humanitarian assistance. WBN serves 1,700 women microentrepreneurs. As of 2013, Mi-Bospo reported total assets of USD 21 million, a gross loan portfolio of USD 18.7 million, approximately 14,700 active borrowers, return on assets (ROA) of 1.34 percent and return on equity (ROE) of 2.66 percent. The institution does not accept deposits.
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 March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of March 2013, the fund holds a label from Luxembourg Fund Labeling Agency (LuxFLAG), an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects.
Sources and Additional Resources
[1] Information provided by European Fund for Southeast Europe (EFSE) to MicroCapital.
[2] European Bank for Reconstruction and Development Story, “Supporting Female Entrepreneurs in BiH,” http://www.ebrd.com/pages/news/press/2013/130606.shtml
[3] European Bank for Reconstruction and Development Fact Sheets, “Bosnia and Herzegovina,” http://www.ebrd.com/downloads/research/factsheets/bosnia.pdf
MicroCapital Story, May 14, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) to Loan $6m to Mikrofin Banja Luka of Bosnia and Herzegovina, Inecobank of Armenia,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-to-loan-6m-to-mikrofin-banja-luka-of-bosnia-and-herzegovina-inecobank-of-armenia/
MicroCapital Story, April 4, 2013, “MICROCAPITAL BRIEF: The European Fund for Southeast Europe (EFSE) to Loan $1.9m to Mi-Bospo of Bosnia and Herzegovina,” https://www.microcapital.org/microcapital-brief-the-european-fund-for-southeast-europe-efse-to-loan-1-9m-to-mi-bospo-of-bosnia-and-herzegovina/
MicroCapital Story, February 27, 2013, MICROFINANCE PAPER WRAP-UP: “Microfinance at The Margin: Evidence from Bosnia and Herzegovina”; by Ralph De Haas, Heike Harmgart, Britta Augsburg and Costas Meghir; published by European Bank for Reconstruction and Development,” https://www.microcapital.org/microfinance-paper-wrap-up-microfinance-at-the-margin-evidence-from-bosnia-and-herzegovina-by-ralph-de-haas-heike-harmgart-britta-augsburg-and-costas-meghir-published-by-europe/
MicroCapital Story, October 15, 2012, “Microfinance Microscope 2012; Impact of Financial Access in Bosnia and Herzegovina; Economic Opportunities and Financial Outcomes of Microfinance”, https://www.microcapital.org/microfinance-publication-round-up-microfinance-microscope-2012-impact-of-financial-access-in-bosnia-and-herzegovina-economic-opportunities-and-financial-outcomes-of-microfinance/
MicroCapital Story, October 4, 2007, “MICROCAPITAL STORY: International Finance Corporation (IFC) and Westpac Sponsor Workshop to Increase Microfinance to Women Entrepreneurs, Exim Bank and MI-BOSPO Attend,“ https://www.microcapital.org/microcapital-story-international-finance-corporation-ifc-and-westpac-sponsor-workshop-to-increase-microfinance-to-women-entrepreneurs-exim-bank-and-mi-bospo-attend/
MicroCapital Universe Profile: Mikrokreditna Fondacija Mi-Bospo
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrokreditna+Fondacija+Mi-Bospo
MicroCapital Universe Profile: The European Fund for Southeast Europe (EFSE)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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