ProCredit Bank, in partnership with the U.S. International Development Finance Corporation (DFC), secured a USD 15 million guarantee line in September 2023 to support the BiH diaspora-linked businesses.
This agreement builds upon the ongoing collaboration between the U.S. government and ProCredit Bank, aiming to empower micro, small, and medium-sized enterprises (MSMEs) in Bosnia and Herzegovina (BiH) connected to the diaspora, ultimately contributing to the country’s economic development.
This support, provided through DFC with financial backing from the US Agency for International Development, facilitates access to financial services for businesses with innovative projects that might not be possible without such support. The guarantee line covers 50% of the loan amount, acting as a substitute for required collateral.
The guarantee line is intended for all private micro, small, and medium-sized enterprises in BiH, including their affiliated legal entities, that meet specific criteria. This includes MSMEs owned by or connected to the diaspora, with confirmed business partnerships with individuals from the diaspora residing outside BiH.
The term “diaspora” encompasses Bosnian emigrants and their descendants living outside their country of origin or birth, whether temporarily or permanently, who still maintain significant ties to Bosnia and Herzegovina. It not only refers to recent emigrants but also to those who have been outside their home country for several generations yet retain their identity and significant connections with BiH.
Osman Kajmović, Director of the Sales Support and Business Development Department at ProCredit Bank, explains how this guarantee line aims to stimulate economic growth and improve access to financing for Bosnian and Herzegovinian businesses connected to the diaspora.
“ProCredit Bank in Bosnia and Herzegovina strongly supports the connection between the Bosnian diaspora and their homeland. This loan guarantee line will facilitate easier access to financial services for diaspora investors, thereby contributing to new and innovative solutions within the BiH market.” said Kajmović.
“DFC is proud to support ProCredit Bank in expanding its lending to Bosnian diaspora owned and diaspora linked small businesses,“ said Maryam Khosharay, Acting Vice President of DFC’s Office of Small Business and Financial Services. “DFC’s financing will help mobilize private capital to drive positive developmental impact and benefit communities in Bosnia and Herzegovina. ”
As part of the partnership with USAID, ProCredit will also focus on creating financial products that better suit the needs of small and fast-growing companies connected to the diaspora. Additionally, ProCredit will continue to strengthen information exchange mechanisms with USAID to ensure better alignment of the bank’s financial products with the support programs offered by USAID through the Diaspora Invest project.
For more information about this ProCredit Bank guarantee line, please visit their website, contact them via email at info@procreditbank.ba, or call +387 33 250 950.
ProCredit Bank remains dedicated to supporting the economic development of BiH and enhancing access to finance for micro, small, and medium-sized enterprises across the country.