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| Description of company and purpose of project |
| The project involves a €2 million loan to MI-BOSPO (the “NGO”), a non-regulated, non-bank Microcredit Organization based in Tuzla, Bosnia and Herzegovina (BiH) operating on a commercial basis with a strong independent Board of Directors. The purpose of the loan is to support MI-BOSPO’s microfinance lending operations. |
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| Project sponsor and major shareholders of project company |
| The Founder, Bosnian Committee for Help (BOSPO) started microlending activities in March 1996 with the help of the World Bank Pilot Local Initiative Project. and the Danish Refugee Council (DRC). In June 2000, a Law on Microcredit Organizations (the “MCO law”) was passed which allowed for the registration of BOSPO's microcredit program as a separate legal entity and thus led to the founding of the Microcredit Organization MI-BOSPO. |
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| Total project cost and proposed IFC investment |
| The project involves a €2 million loan to MI-BOSPO. |
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| Location of project and description of site |
| The purpose of the loan is to support MI-BOSPO’s microfinance lending operations through eight branch offices (accompanied by 5 field offices) located throughout North Eastern part of Bosnia and Herzegovina. |
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| Project Development Impact and IFC's Role |
The developmental impact of MI-BOSPO is expected to be high and far reaching in terms of its economic support for productive micro enterprises and stimulus for employment generation. Specifically, IFC’s investment is expected to have a high development impact in the following key areas:
- Significant Contribution to Economic Development through IFC’s support of the strengthening of a microfinance company and the NGO’s provision of a more ample range of financial products that were previously not available to microentrepreneurs; and
- Significant Direct Contribution to Poverty Reduction - this project is expected to reach an estimated 3,000 new microentrepreneurs and increase employment and income generation for over 10,000 citizens during the tenor of the loan through MI-BOSPO’s branch offices located in BiH. |
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| Environmental and social issues - Category FI-1 |
This is a category FI Type 1 project according to IFC's environmental and social review procedure. MI-BOSPO will be required to designate individuals to have responsibility for the environment and who will attend IFC's environmental management workshop or an approved equivalent, establish an environmental management system to ensure that activities financed under relevant operations are consistent with applicable BiH environmental, occupational health and safety regulations and IFC's Microfinance Exclusion List, and submit to IFC an environmental management plan and annual environmental performance reports.
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| To contact the project company, please write to: |
Nejira Nalic
Executive Director
MI-BOSPO
Bosne srebrene bb
75000 Tuzla
Bosnia and Herzegovina |
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