The European Bank for Reconstruction and Development (EBRD) is increasing its support for green investments in the residential sector of Bosnia and Herzegovina through a new financing package for Mikrofin, the country’s largest microfinance institution. As part of this effort, the EBRD is extending a senior loan of up to €4 million to Mikrofin Banja Luka under the Western Balkans Green Economy Financing Facility (GEFF) III – REPower Residential Programme. The full amount of the loan will be dedicated to energy-efficiency and renewable-energy projects, with 100 per cent of the funds classified as green finance.
This marks Mikrofin’s fourth collaboration with the EBRD through the GEFF framework, following earlier phases in which it successfully channelled €6 million to households and residential borrowers. Through this new loan, Mikrofin will finance households and housing associations looking to invest in high-performance energy-efficiency technologies and approved renewable-energy solutions. These may include better insulation, modern heating and cooling systems, rooftop solar installations, energy-efficient windows, and other improvements that help reduce energy consumption.
Such upgrades are expected to cut carbon emissions, lower energy bills for residents, and support long-term environmental sustainability. The initiative is part of a wider push to accelerate the green transition across the Western Balkans. Residential buildings remain one of the most energy-intensive and carbon-heavy segments of the economy in the region. By supporting technologies that go beyond existing national standards, the programme aims to drive long-term climate resilience and encourage more responsible energy use.
In addition to the financing, the loan will be supported by a package of technical assistance and investment incentives. These will be funded by the European Union through the Western Balkans Investment Framework and by the Japan-EBRD Cooperation Fund.
The support includes capacity-building for Mikrofin, activities to strengthen the local market for green technologies, and targeted incentives that make it easier and more attractive for end-borrowers to adopt sustainable solutions. Since beginning operations in Bosnia and Herzegovina in 1996, the EBRD has invested more than €3.4 billion in 262 projects, continuing to play a key role in promoting economic development and environmental progress in the country.
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