The FINANCIAL — The EBRD is providing a loan of up to €5 million to MKF Partner, a microfinance institution in Bosnia and Herzegovina, to support urgently needed energy efficiency investments in the country’s residential sector.
The finance is provided under the Bank’s €85 million Green Economy Financing Facility (GEFF) for the Western Balkans. Incentives and technical cooperation in support of green technology investments will be provided by the European Union (EU), Austrian Federal Ministry of Finance and the European Western Balkans Joint Fund under the Western Balkans Investment Framework.
The funds will be on-lent to individuals, residents’ associations, producers, service providers, suppliers and vendors of green technologies for investments that modernise existing housing stock and support the implementation of sustainable energy technologies, according to the EBRD.
The new €5 million loan follows a previous investment, made in 2017, making a total of €22 million available towards green residential loans in Bosnia and Herzegovina.
MKF Partner is one of the largest microfinance institutions and an active lender to micro and small enterprises in Bosnia and Herzegovina. 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 (GET) approach is a flagship initiative by the Bank which calls for increased investment in energy efficiency and renewable energy technologies in the EBRD’s 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.
Since the beginning of its operations in Bosnia and Herzegovina the EBRD has invested €2.1 billion in almost 150 projects in the country. The Bank focuses on supporting the restructuring and expansion of the local private sector, forging closer links with wider regional markets and promoting a more efficient and sustainable use of energy and resources.