The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have partnered with Raiffeisen Bank in Bosnia and Herzegovina to support small and medium-sized enterprises.
The five million euro loan from the EBRD was 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 granted 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% of the loan amount. , making their investments more affordable.
Participating small businesses will also be offered technical assistance for the preparation and implementation of 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 improving energy efficiency, as well as renewable energy. At least 60% of the loans will go to investments that support the green transition.
EBRD Director for Bosnia and Herzegovina Manuela Naessl said she was very happy to sign the loan agreement today and support the strengthening of the real economy in Bosnia and Herzegovina, with a partner long-standing Bank Raiffeisen.
“This line of credit will help local SMEs to invest and rebuild an even stronger, more resilient, greener and more competitive economy,” said Naessl, said the EBRD.