IFC Supports Low-Income Women Entrepreneurs in Bosnia and Herzegovina
In Washington, D.C.:
Thoko Moyo
Phone: +1 (202) 458 8517
E-mail: tmoyo@ifc.org
Tuzla, Bosnia and Herzegovina, June
13, 2006—The International Finance Corporation, the private sector
arm of the World Bank Group, today signed an agreement to provide a 2 million
euro loan to MI-BOSPO, a non-regulated, non-bank microcredit organization
based in Tuzla, Bosnia and Herzegovina.
MI-BOSPO specializes in lending to low income women entrepreneurs. By providing
the 2 million euro loan, IFC aims to support MI-BOSPO’s microfinance lending
operations consisting of eight branch offices and seven satellite offices
located throughout northeast Bosnia and Herzegovina. The proposed project
will expand an existing financially successful micro lending program, targeting
micro and small enterprises with little or no access to the formal financial
system. Improved access to microfinance will help stabilize the economy,
improve competition, restore economic growth, and achieve greater social
equity.
Edward Nassim, IFC’s vice president of Europe, Africa, and the Middle
East, said, “We expect the project to have a significant developmental
impact on poverty alleviation by providing credit to an estimated 20,000
women microentrepreneurs over the next three years.”
MI-BOSPO’s loans range from $180 to $18,200, with an average tenor of
13.5 months and a maximum term of 36 months. The organization's strong
performance, as demonstrated by its portfolio growth, profitability, and
control mechanisms, will serve as a "best practice" example for
other financial institutions throughout Southern and Eastern Europe.
Nassim added, “We hope that this is the start of a long-term strategic
relationship with MI-BOSPO. In addition to the investment, IFC will be
providing governance advice through its technical assistance facility for
Southeast Europe, the Private Enterprise Partnership Southeast Europe.”
Continuing, Mr Nassim noted that “MI-BOSPO is also expected to benefit
from the research and information sharing of the Global Banking Alliance
for Women (“GBA”), a consortium of financial institutions that has successfully
targeted the women’s market.”
IFC’s Gender Entrepreneurship Markets (“GEM”) program hosts the secretariat
of the GBA whose members gather research, as well as share information,
strategies and best practices on the women’s market.
Nejira Nalic, MI-BOSPO’s Director, stressed the importance of microloans
for human development. “Micro credit, microfinance, provides opportunity
for low income people to continue running or to start up micro enterprises
– for them to generate more income to improve their living standard. Many
women affected by the war are often the sole income generator in the family
in Bosnia and Herzegovina”.
About MI-BOSPO
The Founder, Bosnian Committee for Help (BOSPO, initiated by the Danish
Refugee Council) started its microlending activities in March 1996 with
the help of the World Bank. BOSPO's microcredit program was transformed
into the Microcredit Organization MI-BOSPO in December 2000. The average
disbursed loan amount is about KM 2,200 (less than €1,125, or US$1,300),
which is among the lowest of all Bosnian MFIs. MI-BOSPO is an affiliate
of Women’s World Banking and other local, state and regional microfinance
networks.
About IFC
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries provide
its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.
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