EBRD and EU support access to finance for MSMEs in Bosnia and Herzegovina
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are strengthening access to finance for micro, small and medium-sized enterprises (MSMEs) in Bosnia and Herzegovina by supporting a new portfolio risk-sharing facility with ProCredit Bank d.d.
The EBRD is providing an unfunded portfolio guarantee of up to €20 million, covering 50 per cent of the credit risk on a newly originated MSME loan portfolio of up to €40 million. The facility is expected to significantly expand ProCredit Bank’s capacity to lend to underserved segments of the economy, from very small businesses and companies outside major urban centres to firms led by women and young entrepreneurs.
The project is supported by EU first-loss risk cover under the European Fund for Sustainable Development Plus (EFSD+), helping to de-risk lending and unlock additional private-sector financing. The transaction will also help to increase the share of green investments in the country, with at least 25 per cent of the EBRD-supported portfolio going to finance projects aligned with the Bank’s Green Economy Transition criteria.
Stela Melnic, Head of the EBRD in Bosnia and Herzegovina, said: “MSMEs are the backbone of the economy in Bosnia and Herzegovina, yet access to finance remains a key constraint on their growth. Through this new risk-sharing facility with ProCredit Bank, we are helping to unlock fresh lending to businesses that drive employment, innovation and resilience, while supporting greener and more inclusive economic development.”
Amir Salkanović, Chairman of the Management Board, ProCredit Bank, said: “Access to finance in Bosnia and Herzegovina is still not evenly distributed, particularly for micro and small businesses, companies outside major urban centres, and entrepreneurs in early stages of development. This type of risk-sharing structure allows us to deliberately expand into these segments and provide support where it is most needed. Our focus remains unchanged, financing sustainable, real-sector projects and acting as a long-term partner to the domestic economy.”
ProCredit Bank d.d. Bosnia and Herzegovina is a long-standing EBRD partner and a leading lender to MSMEs, with a strong focus on responsible banking and sustainable development. By sharing risk and providing capital relief, the facility will enable the bank to channel additional resources into productive sectors of the economy and improve access to finance for businesses that often face structural barriers when seeking credit.
The EBRD is a long-term partner of Bosnia and Herzegovina and a major institutional investor in the country, supporting private-sector development, financial resilience and the transition to a greener economy. Since beginning operations in Bosnia and Herzegovina, the EBRD has invested more than €3.4 billion in 265 projects, supporting sustainable infrastructure, the private sector and economic resilience.
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EBRD, EU and Fawry support young entrepreneurs in Egypt
27.04.2026.16:58
The European Bank for Reconstruction and Development (EBRD) is supporting youth-led micro, small and medium-sized enterprises (MSMEs) in Egypt by providing a loan of up to EGP 250 million (€4.4 million) to Fawry MSME Finance, one of the country’s largest microfinance institutions.
The EBRD Youth in Business credit line will be channelled to local private MSMEs that are led or majority owned by entrepreneurs under the age of 35, and will focus on rural areas. First-loss risk cover of up to 10 per cent will complement the credit line, while the young sub-borrowers will benefit from investment grants in the form of cash incentives, funded by the European Union (EU), of up to 10 per cent of the loan amount.
A technical cooperation package funded by the EBRD will assist Fawry MSME Finance with programme implementation, capacity-building, and training in gender-responsive lending, as well as tailored advisory support to advance the company’s digital transformation.
In addition, the EBRD Advice for Small Businesses programme, which is funded by the EBRD and the Small Business Impact Fund, will provide non-financial support to the youth-led MSMEs.
Commenting on the project, Mark Davis, EBRD Managing Director for the Southern and Eastern Mediterranean region, said: “This is our first partnership with Fawry, a digital leader in Egypt, and marks the start of a new cooperation to support local micro, small and medium-sized enterprises led or owned by young entrepreneurs, an essential step in helping the Egyptian economy to absorb the growing number of financially underserved young people entering the labour market and to expand their economic opportunities.”
Fawry’s CEO and founder Ashraf Sabry said: “We are proud to launch this collaboration with the EBRD through this financing agreement, which will allow us to broaden our range of financial services for young Egyptian micro-borrowers. We extend our gratitude to the EBRD and the European Union for their support and meaningful contribution.”
The EBRD’s Youth in Business programme, supported by the EU, enables young entrepreneurs to access vital financing and technical assistance to grow their small businesses through dedicated credit lines on-lent by banks and microfinance institutions. The credit lines are complemented by technical assistance, helping partner banks to strengthen their lending capacity. The blended financial support from the EU enables the intended borrowers to access finance at more affordable rates.
Fawry MSME Finance is a pioneering digital-finance microlender established in 2018 by Fawry, Egypt’s leading fully integrated fintech platform founded in 2008 and listed on the Egyptian Exchange (EGX) since 2019.
Egypt is a founding member of the EBRD, which has invested more than €14.6 billion in the country across 225 projects since it began operating there in 2012.
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