The European Investment Bank (EIB) has signed three separate loan contracts for a total amount of €110m aimed at boosting the economy of Bosnia and Herzegovina and supporting the country’s economic recovery efforts.
The transactions include:
– a €50m loan via Intesa Sanpaolo Banka for small and medium sized enterprises (SMEs) and priority projects. The loan aims to finance small and medium-scale projects promoted by SMEs or local authorities in the fields of the knowledge economy, energy and environmental protection throughout the country. A minimum of 70% of the loan will be allocated to SME projects. EIB financing could cover up to 100% of the total cost of the investment for SME projects with a ceiling of €12.5m per project, whereas all other projects will be co-financed up to 50% in partnership with Intesa Sanpaolo Banka (subsidiary of the Italian banking group Intesa Sanpaolo).
– €50m via IRBRS-Republic of Srpska Investment-Development Bank for SMEs and local infrastructure projects. IRBRS manages a number of public funds on behalf of the Government of Republika Srpska with the purpose of supporting the development of the economy of its territory. At the request of the Government of Bosnia and Herzegovina and Republika Srpska, the EIB loan would provide much needed additional funds for lending to the SME sector as well as to public projects, especially in poor areas.
– €10m via LOK Microfinance for small and micro-enterprises, including start-ups. This facility will finance projects undertaken by small and very small businesses in the sectors of agriculture, trade, manufacturing and services. Microcredit Foundation LOK is a non-depository financial organisation whose core business activity is the provision of micro-loans in accordance with the Law on Microcredit Organisations in order to improve the material status of the microloan users.
FinSMEs
26/11/2009