EBRD and EU support for flood recovery in Bosnia and Herzegovina

• EBRD provides a loan of up to €2 million to Mikrofin d.o.o. Banja Luka
• Mikrofin to lend to MSMEs in regions impacted by the floods in 2024
• The loan addresses the need for continued access to financing to MSMEs mostly based in the flood-affected regions

European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are supporting small businesses in Bosnia and Herzegovina to bounce back after the 2024 floods by providing them much-needed funding for repairs and new investments.

Recognising the difficult situation that local businesses face after the floods, which had affected their facilities, operations and cash flow, the bank is providing a loan of up to €2 million to a local microfinance institution Mikrofin d.o.o. for on-lending to small businesses, especially those based in the flood-affected regions.  

The investment is supported by the European Fund for Sustainable Development Plus (EFSD+) in the form of a guarantee. Through its financial inclusion programme, the EFSD+ introduces a variety of risk-sharing instruments to support businesses in more challenging markets.

Stela Melnic, EBRD Director for Bosnia and Herzegovina, said: “The devastating floods that struck Bosnia and Herzegovina brought immense tragedy, claiming lives, triggering landslides, and causing extensive damage to homes, infrastructure, and livelihoods in municipalities such as Kreševo, Fojnica, Kiseljak, Konjic and Jablanica. In response to this crisis, the EBRD acted swiftly, assisting the government of Bosnia and Herzegovina in preparing and applying to the EU Solidarity Fund while also mobilizing its own resources. The loan we have signed with Mikrofin is another important step in providing those affected by the floods with continued access to much-needed financing. The EBRD remains steadfast in its commitment to fostering resilience and recovery across its countries of operation, ensuring that no community is left behind in times of adversity.”

Milena Haneš, Mikrofin Director, said: “Mikrofin operates in the regions affected by floods having clients, offices, and staff members in municipalities Kreševo, Fojnica, Kiseljak, Konjic and Jablanica. We are happy to participate in the implementation of the EBRD project, and to assist local population to recover their business soon, providing new financing.”

In 2024, the European Bank for Reconstruction and Development (EBRD) invested €213 million across 23 projects in Bosnia and Herzegovina that are helping shape the country’s economic and sustainable growth. A total of €90 million dedicated to green projects, supporting energy efficiency, renewable energy, and decarbonization efforts. These investments reflect the Bank`s commitment to empowering Bosnia and Herzegovina’s transition to a greener and more resilient economy.

The EBRD has invested more than €3.3 billion in 241 projects in Bosnia and Herzegovina since it began operating in the country in 1996.