The ministry will subsidise the interest rates for the businesses which will receive loans under the credit line, BBI Banka said in a press release last week.
The funds are intended to help businesses ensure liquidity, improve the efficiency of their operations and grow, giving priority to companies which plan new hires, the press release read.
Companies can borrow up to 1 million marka, with a repayment period of up to seven years, depending on the type and amount of the loan.
The lender intends soon to launch a public call for businesses to apply for the loans, it added.
The Sarajevo Canton is one of ten cantons that make up the Federation - one of two autonomous entities that form Bosnia and Herzegovina. The other entity is the Serb Republic.
(1 euro = 1.95583 marka)