May 8 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it is supporting small businesses in Bosnia by providing a guarantee worth the equivalent of 10 million euro to UniCredit Bank Mostar.
The guarantee will allow the Bosnian bank to free up capital and expand investments in the small and medium-sized enterprises (SME) segment, the EBRD said in a statement.
Moreover, thanks to the guarantee UniCredit Bank Mostar will introduce a new risk-sharing instrument currently unavailable in the local market.
"The project will promote a robust SME sector, which is crucial in the country as much as in need of financing, it will foster deeper financial intermediation to reach under-served market segments and strengthen competition and market effectiveness in the financial sector," the EBRD said.
The guarantee contract was signed during the EBRD Annual Meeting and Business Forum taking place in Sarajevo on May 8-9.
The EBRD is a major investor in Bosnia and Herzegovina with investments worth 2.3 billion euro in 159 projects across the country.