The Government of the Federation of BiH, at the proposal of the Federal Ministry of Finance, passed a Decision approving the loan to Union banka d.d. Sarajevo under subordinated conditions from the funds determined by the FBiH Budget for 2022, in the amount of 15 million marks.
These funds are approved to Union Bank on a credit basis with a maturity of 25 years and a fixed interest rate of 0.1 percent per year, the FBiH Government’s Public Relations Office announced on Thursday.
The funds will be used to place a credit line for young people to solve the housing issue. This will significantly contribute to resolving the existential issues of the population, which will affect the stay of young and educated people in the country, as well as strengthening the credit potential of Union Bank and the possibility of offering long-term loans to the population.
The explanation of the Decision states that since the launch of the line of housing loans for young people in 2018, a total of 1,128 loan applications have been approved in the total amount of 110,031,162.81 KM, and the average age of beneficiaries is 32 years, of which 57 percent and higher education, and 17 percent have master’s and doctoral degrees. Beneficiaries of housing loans come from 50 cities in FBiH. The total amount of approved loan applications was financed by the Government of the Federation of BiH with 55 million KM and the participation of Union Bank with 55,031,162 KM.
Also, on the basis of the loan from 2021, which is currently operational for a later start due to the epidemiological situation, a loan portfolio for individuals was formed.
The results are, among other things, 243 approved and realized credit applications in the total amount of 25,409,217.60 KM, and after processing the processing requests, a total of 269 approved and realized credit applications in the total amount of 28,470,217.60 KM are expected. The average loan amount is 105,150.28 KM, while the average age of the borrower is 30 years, of which 56 percent have a university degree or higher, and 13.6 percent have a master’s and doctoral degree. Beneficiaries of housing loans come from 39 cities in FBiH.
The Federal Ministry of Finance is authorized to conclude a Loan Agreement on behalf of the Government of the FBiH on subordinated terms with Union Bank, and the Federal Minister of Finance is authorized to sign this agreement.
