The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has launched a €20 million portfolio risk-sharing facility with ProCredit Bank d.d. in Bosnia and Herzegovina. The initiative is designed to improve access to finance for micro, small and medium-sized enterprises (MSMEs), which are considered the backbone of the country’s economy but continue to face significant barriers in obtaining credit.
The facility will enable up to €40 million in new lending by covering 50 per cent of the credit risk on a newly created MSME loan portfolio. It is expected to expand lending capacity to underserved businesses, including very small enterprises, firms outside major urban centres, and companies led by women and young entrepreneurs. The aim is to support job creation, innovation, and broader economic resilience.
The project is backed by the EU under the European Fund for Sustainable Development Plus (EFSD+), which provides first-loss risk protection to reduce lending risks and attract additional private-sector investment. A key feature of the programme is its focus on sustainability, with at least 25 per cent of the supported portfolio expected to finance green investments aligned with climate and environmental transition goals.
EBRD and ProCredit Bank representatives emphasised that limited access to finance remains a key challenge for MSMEs in Bosnia and Herzegovina. They highlighted that the risk-sharing structure will allow the bank to expand lending to underserved segments while maintaining its focus on sustainable, real-sector economic development and long-term partnership with local businesses.
ProCredit Bank, a long-standing EBRD partner, is recognised as a major lender to MSMEs in the country. Through this initiative, it aims to strengthen its ability to support smaller enterprises and promote inclusive economic growth by channeling additional resources into productive sectors of the economy.
The EBRD, which has invested more than €3.4 billion in Bosnia and Herzegovina across 265 projects, continues to play a key role in supporting private-sector development, financial stability, and the transition toward a greener and more resilient economy in the country.
