Country
Bosnia and Herzegovina

Local project partner
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German project partner
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Donor
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Duration
2001 - 2002

The aim of the project was to set up a credit line for the target group of SMEs in rural regions. A total of 5 credit institutions were selected (selection criteria: Readiness, financial stability and regional spread), 2 banks and 3 microcredit institutions. With the help of the project, the financial institutions were familiarised with the target group - the banks did not yet serve this group, while for the microcredit institutions the granting of larger loans represented a new business area.

The target group comprised SMEs in rural regions, generally companies with fewer than 30 employees. Loan officers and other employees of the bank were also trained as part of the project. Lending procedures were adapted to the special needs of customers from rural regions; this was intended to take particular account of customers who are active in the agricultural sector.

The participating credit institutions and the loans granted were subjected to intensive monitoring. The available credit line of EUR 5 million was extended to the target group within a short period of time, with the quality remaining consistently high. The rate of defaulting loans was always below 1.5 % (portfolio at risk approach).

The administration of the credit line was initially unclear, but was then successfully integrated into the "European Fund for Bosnia and Herzegovina" as part of the project.

Tasks

• Consultancy services (analysis, development of concepts and implementation methods, support during implementation)
• Careful analysis of the participating institutions
• Comprehensive monitoring of the partner institutions
• training
• Staff selection
• Project management / reporting / design and refinement of the original project concept (transfer of the administration of the credit line to the "European Fund for Bosnia and Herzegovina")