The European Bank for Reconstruction and Development said it approved a loan of up to €5 million to a Bosnian microfinance organization, to support energy efficiency investments in the country’s residential sector.
The loan is provided under the Bank’s €85 million Green Economy Financing Facility for the Western Balkans. Incentives and technical cooperation in support of green technology investments will be provided by the European Union, Austrian Federal Ministry of Finance and the European Western Balkans Joint Fund under the Western Balkans Investment Framework.
Funds from the loan to MKF Partner will be on-lent to individuals, residents’ associations, producers, service providers, suppliers and vendors of green technologies for investments that modernize existing housing stock and support the implementation of sustainable energy technologies.
MKF Partner is an active lender to micro and small enterprises in Bosnia. It has a long-standing relationship with the EBRD and has been developing green products with the Bank since 2012.
The EBRD’s Green Economy Transition approach is a flagship initiative by the Bank which calls for increased investment in energy efficiency and renewable energy technologies in the EBRD regions. In addition to GEFFs in 24 economies where the EBRD invests – and where the Bank cooperates with local banks – the EBRD also supports green energy projects directly.