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 through a new portfolio risk-sharing facility with ProCredit Bank d.d., according to a press release published on 27 April 2026. The EBRD is providing an unfunded portfolio guarantee of up to €20 million, supporting up to €40 million in new lending. The transaction is backed by the EU under the European Fund for Sustainable Development Plus (EFSD+) programme. It targets women-led, youth-led and green businesses among other underserved segments. The initiative aims to unlock fresh lending and expand financial inclusion across the country.
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. The EBRD has been a long-term partner of Bosnia and Herzegovina and a major institutional investor in the country. Since beginning operations there, the EBRD has invested more than €3.4 billion in 265 projects. Its work has supported sustainable infrastructure, the private sector and economic resilience. The new facility builds on this track record of private-sector development.
The EBRD guarantee will cover 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 very small businesses and companies outside major urban centers. It will also reach firms led by women and young entrepreneurs. EU first-loss risk cover under the EFSD+ programme helps de-risk lending and unlock additional private-sector financing. At least 25 per cent of the EBRD-supported portfolio will 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 of ProCredit Bank, noted that access to finance in the country is still not evenly distributed. He emphasized that the structure enables deliberate expansion into underserved segments. He added that the bank’s focus remains on financing sustainable, real-sector projects.
By sharing risk and providing capital relief, the facility will enable ProCredit Bank to channel additional resources into productive sectors of the economy. It is designed to improve access to finance for businesses that often face structural barriers when seeking credit. The arrangement reinforces the EBRD’s support for private-sector development and financial resilience in Bosnia and Herzegovina. It also advances the country’s transition to a greener economy. Together, the EBRD and the EU aim to deliver measurable benefits for MSMEs across the country.
