The Impact of Microcredit Programs in Alleviating Poverty and Restoring Livelihoods of the Targeted Populations in Bosnia And Herzegovina

The effective design and delivery of micro-credits is difficult under all circumstances. However, in conflict-affected societies, the task of microcredit institutions that seek to provide financial stability to its most impoverished members is more complicated. This paper aims to investigate the role and the impact of the microcredit industry in Bosnia and Herzegovina. Data for this study were gathered from both microcredit institutions and recipients of microcredit funds using both qualitative and quantitative techniques. The research results show that refugees, internally displaced persons and returnees are less likely to get loans compared to those with stable incomes, meaning the population with stable incomes has benefited more from these credits in improving their living conditions. Most of the targeted populations of the interest free microcredit foundation (MCF) that was taken as a case study in this research expressed their satisfactions with the loans and service provided by the particular MCF. From a policy perspective, it is important to focus attention on the most affected population groups, those least able to pull themselves out of poverty. Microcredit foundations should find a balance between being non-profit based and achieving their full sustainability