Mayor Hadžibajrić Visited Entrepreneurs: Financing of Business Entities with Interest Rate Co-financing

SARAJEVO, (Patria) - The Municipality of Stari Grad, in cooperation with Bosna Bank International d.d. Sarajevo, is once again implementing a financing line to encourage employment and improve business operations in Stari Grad. The cooperation entails BBI bank providing short-term, medium-term, and long-term credit financing exclusively for legal entities registered in the Stari Grad area, while the Municipality co-finances the profit margin for credit beneficiaries.

In the past four years, more than thirty entrepreneurs from Stari Grad have utilized these loans to improve their businesses, with 2.6 million convertible marks disbursed. Of this amount, the Municipality of Stari Grad covered 135,000 KM in profit margins – interest.

The Mayor of the Municipality of Stari Grad, Mr. Ibrahim Hadžibajrić, visited entrepreneurs today who had used these favorable credit lines twice before and discussed with them how much the funds have helped them in developing their businesses. In Lapišnica, Mayor Hadžibajrić visited the company Ga-Me-Ha, which has been synonymous with exclusive, high-quality, and top-tasting delicacies for over 50 years. The owner of the company, Faredin Dino Miftari, along with his associates, gave a brief tour of the factory facilities and presented the production processes as well as the equipment purchased with the credit funds.

Iris Bašić, Deputy Director of GA-ME-HA, emphasized that this credit line is an excellent opportunity for all business entities from Stari Grad and that they should be encouraged to take such a business step to improve their operations.

"As you noticed during the tour, we used the funds to purchase new machinery and generally modernize production. The scope and type of production in our company are truly wide, from healthy food, sweets and chocolate products, traditional cakes, and Bosnian sweets, and so on. Our goal is to always produce and market fresh products. The credit funds enabled us to purchase new machines from Turkey for the production of rahat lokum, tahanhalva, and other sweets," Bašić explained.

Mayor Hadžibajrić pointed out that ensuring a quality business environment and stimulating economic development in Stari Grad are among the priorities of this local community, and expressed satisfaction with such examples of successful business operations.

"I want to thank BBI bank for participating in this project with the Municipality of Stari Grad all these years. These are very favorable credit funds provided to assist businesses, and the Municipality of Stari Grad co-finances the profit margin. The company Ga-Me-Ha, which employs over 100 workers, has used this credit line twice and is the best indicator of what this offer entails," said Mayor Hadžibajrić.

He added that entrepreneurs will be able to use the credit line again this year, which could help many due to weak business performance caused by the coronavirus pandemic.

"In May, we signed an agreement with BBI bank for this year, and the bank plans to disburse 1.5 million KM, while we have allocated 25,000 KM for co-financing profit margins. I invite all interested business entities from Stari Grad who need loans to apply and take advantage of this offer," said Mayor Hadžibajrić.

Among the business entities that have used credit funds twice is Mehmed Poričanin, whom Mayor Hadžibajrić visited today at the renowned Pekara Poričanin on Safvet-beg Bašagić street, built in 1953 and widely known for its somuns and various other types of pastries. Mehmed took over this business in 1969 and has earned a reputation as a master of his craft through decades of dedicated work.

"Thanks to this cooperation between the Municipality and BBI bank, I received two loans. One was intended for the bakery and involved the purchase of three new delivery vehicles, and this loan will soon be paid off. We took out the second loan for the hotel to purchase new kitchen equipment and furniture. This project by the Municipality and BBI bank means a lot to the private sector because taking out short-term loans does not incur interest costs, which is excellent, as the loan then becomes a classic loan. People should know this, and therefore, a big thank you to the Municipality and BBI bank for the initiative," Poričanin explained.

Interested entrepreneurs can obtain more information at the Ferhadija branch of BBI bank, via email addresses: [email protected] and [email protected], or by calling 033/257-508, 253-920, 275-507, and 275-264. Applications for financing from the financial line will be accepted until the end of this year, i.e., December 31, 2020, and the processing of applications is carried out within 90 days of receipt.