Sarajevo, Bosnia and Herzegovina, October
31, 2014—IFC, a member of the World Bank Group, is providing a €4
million loan to MF Banka to support the bank’s lending to micro and small
enterprises in Bosnia and Herzegovina. Smaller companies are critical to
Bosnia and Herzegovina’s economic development, and adequate financing
is crucial to their growth.
Headquartered in Banja Luka, MF Banka
is the only bank in Bosnia and Herzegovina dedicated exclusively to micro
and small enterprises, an underserved segment of the economy. According
to official statistics, 75 percent of all active businesses in the country
are micro-enterprises with less than 10 employees.
“With MF Banka’s successful lending
track record and well-defined development strategy, we have a strong capacity
to use IFC’s loan to shore up finance for smaller companies in Bosnia
and Herzegovina,” said Srecko Bogunovic, Director of MF Banka.
The loan is part of IFC’s strategy
to boost Bosnia and Herzegovina’s private sector by increasing support
for micro and small enterprises in the country. IFC has extended loans
to several banks and microfinance institutions in the country and also
provides advisory services to MSMEs to improve their corporate governance
and access to finance.
“Micro and small enterprises are key
to the sustainable development of Bosnia and Herzegovina,” said Edward
Strawderman, Regional Head of Industry in Europe, Central Asia, Middle
East and North Africa. “They play a major role in creating jobs and generating
income, fostering economic growth and social stability, and contributing
to the development of a dynamic private sector.”
Bosnia and Herzegovina became a shareholder
and member of IFC in 1996. Since then, IFC has invested around $400 million
in Bosnia and Herzegovina, including funds mobilized from our partners.
As well as supporting the development of local financial institutions,
IFC has invested in the country’s health sector, municipal infrastructure,
agribusiness, construction, and general manufacturing.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in about 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and tackle
the most urgent challenges of development. For more information, visit
For more information about MF Banka,