The Grameen Credit Agricole (GCA) Foundation, whose head office is in Luxembourg, has agreed to issue a three-year loan of EUR 1.2 million (USD 1.4 million) to Mikra, a microfinance institution in Bosnia and Herzegovina that seeks to “provide financial services to the poorest but economically active populations.” Of the microlender’s 15,000 clients, about 10,200 are female and 8,700 live in rural areas. Mikra’s group and individual loans range in size from BAM 500 (USD 300) to BAM 10,000 (USD 6,000) with terms of one month to five years, with grace periods of six months. They also carry fees of zero to 3 percent and interest rates of 17 percent to 36 percent per year. Per government requirements, loans in default carry a maximum interest rate of 10 percent, with the interest total capped at the principal of the loan.
GCA Foundation was established in 2008 by Credit Agricole, a French retail bank, in partnership with Muhammad Yunus, the founder of Grameen Bank. The organization seeks to reduce poverty by providing funding and technical assistance to microfinance institutions and other social businesses. As of February 2021, GCA Foundation has a portfolio of EUR 82 million (USD 97 million) outstanding to 85 partners in 37 countries in Africa and Eurasia. Approximately 83 percent of its investees’ 7.3 million clients live in rural areas, and 87 percent are women.
By Steffi Ong, Research Associate
Sources and Additional Resources
GCA Foundation press release
https://www.gca-foundation.org/en/media-room/#the-grameen-credit-agricole-foundation-consolidates-its-partnerships-in-europe
Mikra homepage
http://mikra.ba/
Mikra publicaitons
http://home.mikra.ba/opste-informacije-i-dokumenti/
GCA Foundation profile on Mikra
https://www.gca-foundation.org/en/organisation/mikra-2/
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