| Talks on microcredit sector in BiH reform ongoing | |
Representatives of Association of Microfinance institutions in BiH (AMFI) should take more active role in reform of the microcredit sector in BiH reads one of the conclusions from a roundtable tackling this topic, held in Sarajevo on 16 July 2010. Representatives of AMFI, entity ministries of finances, banking agencies, European Bank for Reconstruction and Development (EBRD) and other relevant institutions participated in this roundtable.
 On this occasion, representative of Ministry of Finances of Federation of Bosnia and Herzegovina, Nusreta Cerkez, presented Proposal Law on changes and Amendments to the Law on microcredit organizations which is expected to come into force in September 2010.
EBRD representative, Rijad Hasic, presented EBRD plans and strategy related to reform of microcredit sector in BiH. According to his words, EBRD is prepared to actively support microcredit organizations which have capacities and business strategy of growth towards microcredit bank. Also, AMFI's Board of Directors President, Braco Erceg, talked about AMFI's role in the reform process and presented information on the sector's work. At the moment, this sector is serving over 300.000 clients, and MCOs employ over 2.000 workers for which taxes and contributions are regularly paid for. As the biggest issues that the sector is facing with Erceg points out domestic financial crisis besides the global, which is reflected in over-indebted clients, problems with repayments, losses, embezzlements, etc; and legal and regulatory issues that slows down sectors' development. Representatives of Federal Banking Agency stressed that in AMFI they see a partner in the process of creation and improvement of the regulatory framework. During the roundtable, there was also talk about sector consolidation, where the consolidation of the legal and regulatory framework in Bosnia and Herzegovina as a whole was emphasized as the basic precondition. |