The Head of the Delegation of the European Union and the Special Representative of the European Union in Bosnia and Herzegovina, Ambassador Luigi Soreca, attended the signing ceremony of two financial agreements between the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank, the aim of which is to improve access to financial resources for small businesses and households throughout Bosnia and Herzegovina. With the support of the European Union, these agreements are specifically aimed at small businesses run by women, youth and entrepreneurs in smaller communities, as well as households that want to invest in energy efficiency.
The first agreement foresees a guarantee for risk sharing in the amount of 25 million euros, which is provided by the EBRD, and which will be supported by 2 million euros of grants from the European Union to cover part of the credit risk. This joint initiative of the European Union, the EBRD and Raiffeisen Bank aims to provide up to 50 million euros in favorable loans to support small businesses, especially those in smaller communities. The guarantees will help companies from key sectors, such as tourism and agriculture, to obtain loans necessary for investment and development. European Union guarantees reduce the risk for creditors and make it easier for Raiffeisen Bank to extend lending to companies that would otherwise have difficulties securing financial resources.
The second agreement refers to energy efficiency in households. A loan of 3 million euros provided by the EBRD will be available for favorable financing of interventions in the sphere of energy efficiency. Households that meet the conditions will be able to receive a refund from the European Union in the amount of up to 20% of the loan amount after the successful implementation of the project. This initiative is helping households in the country replace old woodwork, improve insulation and heating systems, thereby reducing energy consumption and utility bills.
“The signing of these two agreements is another example of the European Union’s commitment to providing new opportunities for small and medium-sized enterprises throughout Bosnia and Herzegovina and improving the lives of its citizens.. By ensuring better access to financial resources, especially for businesses in smaller communities, and supporting households to make their homes more energy efficient, we help businesses to develop and be more competitive, and citizens to live better. These initiatives also play an important role within the EU Growth Plan for the Western Balkans, as they encourage the green and digital transition and strengthen the resilience of the private sector. Together, we are laying the foundations for a more sustainable and prosperous future for all citizens of Bosnia and Herzegovina,” said Ambassador Soreca.
“The partnership with Raiffeisen Bank, supported by the European Union, represents a significant milestone in our efforts to expand access to financing for businesses in Bosnia and Herzegovina, faced with insufficient access to finance. By combining innovative financial instruments with targeted technical assistance, we enable more SMEs and households to invest in their future, whether through business growth or energy-efficient investments in homes. This is the type of inclusive and green financing that the EBRD is proud to support across the Western Balkans,” emphasized Stela Melnić, director of the EBRD for Bosnia and Herzegovina.
Rainer Schnabl, CEO of Raiffeisen Bank in Bosnia and Herzegovina, pointed out:We are proud to be the first bank in Bosnia and Herzegovina to join the EBRD’s risk sharing program. This cooperation allows us to extend lending to small and medium-sized enterprises, especially those run by women and young people, and to cover areas outside the main urban centers. At the same time, through the financing instrument of the green economy, we support households to invest in energy-efficient solutions that reduce costs and contribute to a more sustainable future. Given that Raiffeisen Bank is celebrating 25 years of business as a good neighbor in Bosnia and Herzegovina, this initiative reflects our long-term commitment and support to entrepreneurship, competitiveness and the green transition of this country..”
The initiatives are part of the wider and continuous support of the European Union towards better access to financial resources and reduction of investment risk in Bosnia and Herzegovina. Since 1996, the European Union has provided around 110 million euros through numerous programs to help small businesses in Bosnia and Herzegovina to be more competitive. In partnership with the EBRD, European Union grants are directed towards innovation, green technologies and advanced digital solutions across the country. As a participant with 400 million euros in the frame Guarantees for the Western Balkansthe European Union works closely with local banks to lower financing costs and reduce risk for investors. Many of the aforementioned guarantees will soon be available to local businesses through partner banks, and will contribute to development, the creation of new jobs, and the green and digital transformation of the economy of Bosnia and Herzegovina.
EBRD has invested over 3.3 billion in Bosnia and Herzegovina through 249 projects since the beginning of its work in the country, i.e. since 1996. The strategic priorities of this bank in Bosnia and Herzegovina are the promotion of the green economy, support for the development of the competitiveness of the private sector and regional integration.
