The role of microfinancing in promoting development: The experience in Bosnia and Herzegovina and Croatia
The paper deals with the limiting factors and the development of specific organizations in financing small and medium sized companies from the example of Croatia and Bosnia and Herzegovina. The transition process in Bosnia and Herzegovina has resulted in the formation of micro credit organizations, specific organizations which are neither banks nor financial companies. Micro credits represent a combination of banking practice and realization of social goals and are intended for the low income population. Bosna and Herzegovina has achieved significant success in this area and is an example for countries in a similar socio-economic situation. For further development of micro credit organizations, it is necessary to ensure adequate legal conditions. This, above all, implies the enactment of an umbrella law at the state level.