EUR 5 million loan from EFSE enhances MF banka's long-term lending capabilities

The European Fund for Southeast Europe (EFSE) granted a EUR 5 million senior loan to MF banka a.d., Banja Luka (MF banka or the Bank) in Bosnia and Herzegovina for on-lending to micro and small enterprises (MSEs).

The new loan facility will strengthen MF banka's long-term lending capacity and enable the Bank to issue loans with a longer maturity. MF banka - part of the Mikrofin group - focuses on working capital and investment loans to mature MSEs.

"We are pleased to broaden our long-standing partnership with MF banka,” says Monika Beck, Chairperson of the Board of EFSE. "MF banka and Mikrofin form a strong team in meeting the needs of successful micro and small entrepreneurs in Bosnia and Herzegovina."

"We are very proud to count on the EFSE's constant and growing support, initially with MCC Mikrofin and later on with our young institution, MF banka JSC," emphasised Srecko Bogunovic, CEO of MF banka. "We have a solid track record in reaching our targets, primarily in serving our focus segment – micro, small and medium businesses (MSMEs) and enable them to become an engine of income and job creation, and thus economic recovery, in the post-war and post-crisis environment. Without the EFSE’s engagement, the challenge would surely have been insurmountable." 

About the European Fund for Southeast Europe

The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey. As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as long-term finance primarily for micro and small enterprises (MSEs) - but also for private households in the form of home improvement loans -  is channelled to these loan customers through local partner lending institutions. Supporting the EFSE's investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management.

Initiated by KfW Development Bank (KfW) on 15 December 2005 from four multi-donor programs under its management, the EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance to leverage private funding for MSE finance in the target region. Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Development Bank of Austria (Oesterreichische Entwicklungsbank - OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW as Lead Investor, the International Finance Corporation (IFC), the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), Sal. Oppenheim and Deutsche Bank.

Oppenheim Asset Management Services S.à r.l., Luxembourg, and Finance in Motion GmbH, Germany, are, respectively, the EFSE’s Fund Manager and Fund Advisor.

About MF banka

MF banka a.d., Banja Luka began operations under this name in July 2010 after the acquisition of the former IEFK Bank by MCC Mikrofin Banja Luka. Working closely with the majority owner and a sister company, Mikrofin Insurance, MF banka developed its network in the major cities of Bosnia and Herzegovina throughout 2011. The bank is maintaining the momentum and currently operates via 18 branches; it recently hired 162 young professionals. Over the past three years MF banka registered the largest growth rates in Bosnia and Herzegovina's banking sector.

MF banka's business model focuses on serving small and medium enterprises (SMEs), micro businesses and individual entrepreneurs with tailored credit products as well as general banking services, including payment services, payment cards, deposits, internet banking etc. MF banka's development plan has received continuous support by reputable foreign investors, KfW Bankengruppe, the European Bank for Reconstruction and Development (EBRD), and EFSE. Media contact EFSE     
Media Relations
Merle Römer
Manager Communications and Events
Tel: +49 (0)69 9778 7650-171
Media contact MF banka
Ms. Mirna Djukic
Marketing Officer
Tel: -+387 (0)51 240-330

Get in touch

Interested in learning more about how the fund works, or seeking partnership opportunities? Contact an EFSE representative today.


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