Croatian Challenges with Microfinance

This presentation looks at the status of financial access in Croatia and outlines challenges faced by the microfinance sector. It states that the banking infrastructure is well developed but entrepreneurs, micro- and small businesses are not adequately served.

Only 42% of Croatia’s population has access to finance. MFIs are working in difficult conditions and are not getting a favorable treatment from the government. The presentation examines the forms of microfinance that are best suited for Croatia. The presentation lists the following recommendations for promoting microfinance in Croatia:

• Establish policy consensus and ground rules for advancing microfinance;
• Create favorable conditions for credit unions;
• Review options for nonbanking credit institutions;
• Develop incentive system for banks to engage in microfinance;
• Revise and redesign microfinance programs;
• Monitor access to finance and improve use of financial services.