Local Initiatives (Microfinance) 2 Project

closed

Closed

The Second Local Initiatives (Microfinance) Project, will address urgent needs to raise incomes, develop businesses, and create jobs in Bosnia and Herzegovina, through the provision of credit, and financial services to low-income people. The main components are: 1) provision of market-driven financing for selected micro-finance institutions (MFIs), to increase their outreach, and quality of services to low-income clients. MFIs will assess eligibility criteria, and technical services needs, while a long-term financing strategy in Euro-denominated loans with a fifteen year term, to MFIs will build a capital base, and assist them with leverage commercial financing; 2) development of micro-finance legal, and regulatory frameworks, to enable the current Micro Credit Organizations -later on MFIs - expand their sources of capital, and services. Alternative institutional forms will be developed within a financial sector framework, so as to mobilize sustainable sources of financing, such as commercial bank financing, equity investment, and savings, i.e., financial companies, for profit, credit-only institutions, and, membership-based savings, and credit institutions, which would only accept deposits from their members. Legal advisory, and consulting services, and technical assistance will be financed; 3) strengthening the institutional, and financial capacity, and performance of MFIs, through training, and technical consulting services; 4) financing of a longitudinal impact assessment, to build MFIs program management, and local research capacity, supported by advisory services; and, 5) project management, and operating costs, funded as government counterpart contributions to the project.

FY17 - Public Administration,Financial Sector

World Bank Group

Project

Commercial, Government