EIB and Raiffeisen provide support to SME companies and young people in Bosnia and Herzegovina.

EIB and Raiffeisen provide support to SME companies and young people in Bosnia and Herzegovina.

 

EUR 25 million loan for financing small and medium-sized companies in Bosnia and Herzegovina

The loan supports jobs in all sectors of the economy and creates job opportunities for young people

The European Investment Bank (EIB) will provide EUR 25 million loan to Raiffeisen Leasing Bosnia and Herzegovina, supporting new lending to small and medium-sized companies (SMEs) in the country. An agreement to lend a first tranche of EUR 15 million was signed today in Sarajevo by Karlheinz Dobnigg, CEO of Raiffeisen Bank Bosnia and Herzegovina, and Matteo Rivellini, Head of Division at EIB in charge of Western Balkans, Croatia and Slovenia.

“I am pleased that by signing this contract we continue our long term successful cooperation between Raiffeisen Group and EIB. The agreed transaction of 25 million EUR will enable financing not only of significant investment projects in the country but also of small and medium scale projects that are crucial for the economic growth. By this credit line we will support the projects in the fields of environment protection, industry, health and education, which also fully reflects our sustainability strategy. We are committed to sustainable entrepreneurship as well as to the creation of wealth by establishing a framework of sustainable finance”, Mr. Dobnigg said.

Mr. Rivellini said: “I am very pleased to sign today a loan to support local small and medium entrepreneurs and to create more jobs in Bosnia and Herzegovina. This loan will also sustain youth employment in the country, thus addressing root causes of potential youth migration. This is the fourth credit line we sign with Raiffeisen Leasing Bosnia and Herzegovina, building on the very successful cooperation developed over the years between EIB and Raiffeisen group in the country and in the Western Balkans region. The signature comes at a pivotal time for the EIB's commitment to Bosnia and Herzegovina. Starting from January 2019, the EIB will place one Desk Office in Sarajevo to further enhance the European support to Bosnia and Herzegovina and foster growth, cohesion and connectivity in the country and the whole region.“

The cooperation between EIB and Raiffeisen Group in B&H started in 2005. Since then, the EIB has provided six loans to the Raiffeisen Group in Bosnia and Herzegovina - totaling EUR 130 million. To date the EIB has supported lending to SMEs in the country through a number of local banks for a total of EUR 710 million. This support remains crucial in helping SMEs and Mid-Caps withstand the challenging financial and economic conditions in the region. Since the start of its activities in Bosnia and Herzegovina, the EIB has provided over EUR 2.4 billion financing across the sectors of the economy, especially supporting investments in the transport and SME sectors, but also those in water and sewage, energy and healthcare sectors.