The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have joined forces with Raiffeisen Bank in Bosnia and Herzegovina to support small and medium-sized enterprises.
The five million euro EBRD loan has been complemented by an EU grant that Raiffeisen Bank will make available to local SMEs to help them access finance to improve their competitiveness.
The loan is provided under the Bank’s SME Competitiveness Support Program, which allows local SMEs to access well-structured financing, as well as incentives of up to 15 percent of the loan amount, making their investments more affordable.
Participating small businesses will also be offered technical assistance in preparing and implementing their investments. Grants and technical assistance are funded by the EU.
Raiffeisen Bank will lend funds to SMEs for investment purposes so that they can improve their production facilities and be compatible with EU standards in areas such as environmental protection, worker safety and product quality.
SMEs will also be able to use funds to invest in automation or energy efficiency improvements, as well as renewable energy. At least 60 percent of the loans will go to investments that support the green transition.
EBRD Director for Bosnia and Herzegovina Manuela Naessl said they were very pleased to sign the loan agreement today and support the strengthening of the real economy in Bosnia and Herzegovina, along with a longtime partner, Raiffeisen Bank.
“This credit line will support local SMEs to invest and rebuild the economy even stronger, more resilient, greener and more competitive,” said Naessl, announced EBRD.