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EBRD lending 5 mln euro to UniCredit's Bosnian unit to support SMEs

EBRD lending 5 mln euro to UniCredit's Bosnian unit to support SMEs Photo: EBRD

SARAJEVO (Bosnia and Herzegovina), October 14 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it is providing a loan of up to 5 million euro ($5.8 million) to Bosnia's UniCredit Bank Banja Luka in support of investments in small and medium enterprises (SMEs).

The funding will be used for on-lending to SMEs for investments that will make their operations compatible with EU standards in areas such as environmental protection, worker safety and product quality, the EBRD said in a statement.

At least 60% of the loans will go to investments that support the green transition, the EBRD added.

Furthermore, the borrowers can benefit from technical assistance in the preparation and implementation of their investments and grants of up to 15% of the total loan amount, provided by the European Union (EU).

EBRD is extending the loan under its Regional SME Competitiveness Support Programme.

To date, the EBRD has invested over 2.7 billion euro in 190 projects in Bosnia and Herzegovina.

UniCredit Bank Banja Luka is based in the Serb Republic, one of two autonomous entities that form Bosnia. UniCredit Group has another bank in Bosnia, UniCredit Bank Mostar, headquartered in the other entity - the Federation.

($ = 0.8621 euro)