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GGF lends 2 mln euro to Bosnia's Mikrofin to back energy efficiency projects

License: CC0 Creative Commons

BANJA LUKA (Bosnia and Herzegovina), March 15 (SeeNews) - The Green for Growth Fund (GGF) has partnered with Bosnia's microcredit company Mikrofin to promote energy efficiency at micro-enterprise and household level through a loan of 2 million euro ($2.3 million), GGF said on Friday. 

The loan, intended for on-lending for building improvements and equipment upgrades for micro agri-businesses, is planned to be enhanced through capacity building measures, which will enable Mikrofin to market and develop an energy efficiency lending product, GGF said in a statement.

The measures for improving the energy efficiency of micro companies and households that will be financed with the loan are projected to result in annual  primary energy savings of some 14,000 MWh and reduction of CO2 emission by some 4,400 metric tons, according to the statement.

Mikrofin's rich portfolio of home improvement and expansion loans has strong potential to promote energy efficiency measures such as insulation of roofs and walls, lighting and windows replacement, and upgrade of household appliances. 

“We are glad to have added this leading microfinance institution to the network of our partners in Bosnia and Herzegovina,” GGF Chairman Olaf Zymelka said. "Given Mikrofin’s outreach, this partnership will not only help small agri-businesses improve their energy efficiency but also cultivate awareness about the topic at the grassroots level, contributing to a demand for more energy-efficient equipment."

“We believe in an open and innovative approach to business and consider the cooperation with the GGF a strong platform to improve the energy efficiency standards of homes in Bosnia and Herzegovina, which would help lower energy bills and provide more comfortable living.” Mikrofin CEO Mladen Bosnic said.

The GGF invests in measures which lead to reduced energy use as well as CO2 emissions and improvement of resource efficiency in Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. It provides financing to local partners that on-lend to enterprises and private households, and it invests directly in renewable energy projects.

Mikrofin, a microfinance market leader in Bosnia, financially supports more than 57,000 clients, mostly low-income micro and small entrepreneurs.

(1 euro = $1.13184)

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