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Bosnia's Serb Republic to back Covid-hit MSMEs with 22.4 mln euro

Bosnia's Serb Republic to back Covid-hit MSMEs with 22.4 mln euro Bosnian marka Source:

SARAJEVO (Bosnia and Herzegovina), October 21 (SeeNews) - Bosnia's Serb Republic will support businesses affected by the Covid-19 pandemic with affordable loans and grants for new technology and equipment worth about 22.4 million euro ($26.1 million) in total, the entity's Investment-Development Bank (IRBRS) said.

IRBRS will extend 20.5 million euro of loans, provided by the World Bank, to micro, small and medium enterprises (MSMEs), which have reported a fall in revenues in the second quarter of 2020 of more than 20% year-on-year and firms located in undeveloped municipalities, the bank said in a statement on Wednesday.

The loans will be distributed through local Sberbank BH, a subsidiary of Austria-based Sberbank Europe, and Nova Banka.

Firms can apply for a maximum loan amount of 1 million euro and will have to repay the loans in three to 12 years.

In addition, the ministry of economy and entrepreneurship of the Serb Republic will disburse 3 million marka ($1.8 million/1.5 million euro) to Covid-19 affected firms for the purchase of new technology and equipment, according to the statement.

The Serb Republic is one of two entities that make up Bosnia and Herzegovina. The other one is the Federation.

($ = 0.8584 euro)