SARAJEVO (Bosnia and Herzegovina), February 2 (SeeNews) – The European Bank for Reconstruction and Development said on Friday it is lending a 5 million euro ($6.2 million) loan to Bosnia's Addiko Bank Banja Luka to support the growth and development of small businesses in the country's Serb Republic entity.
The funds will be provided to micro companies and small and medium-sized enterprises, the EBRD said in a statement, adding that the sources of long-term financing remain limited in Bosnia, hampering the growth of the private sector in the country.
“We are very pleased to starting this cooperation with Addiko Bank Banja Luka today as it will allow us both to support the development of the bank and strengthen the real economy," Ian Brown, EBRD head of office in Bosnia and Herzegovina, said in the statement.
Mario Ivankovic, CEO of Addiko Bank Banja Luka, commented: "We are glad that this arrangement will be primarily used for supporting the SME sector as a driver of the local economy, but indirectly also supporting local communities and their economic development.”
The EBRD has invested more than 2 billion euro in more than 145 projects in Bosnia and Herzegovina since it began operating in the country.
Addiko Bank is an Austrian banking group, which began to operate in the Balkan region instead of Hypo Alpe Adria Bank in July 2016.
The Serb Republic is one of the two entities that form Bosnia and Herzegovina. The other is the Federation.
($=0.800620 euro)