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.