Continuation of Cooperation on the Implementation of Credit Incentives

(Patria) - Federal Minister of Development, Entrepreneurship and Crafts Amir Zukić and Chairman of the Management Board of the Development Bank of the Federation of Bosnia and Herzegovina (RBFBiH) Semir Fejzić signed an Agreement on Commissioned Business in Mostar.

This agreement represents a continuation of the successful cooperation between the Federal Ministry and RBFBiH in implementing the Program "Credit Incentive for Development, Entrepreneurship and Crafts" for small economy entities in the Federation of Bosnia and Herzegovina.

At the proposal of the Federal Ministry of Development, Entrepreneurship and Crafts, a total of BAM 25,648,465.00 has been allocated from the Budget of the Federation of Bosnia and Herzegovina for this program over the past 12 years and paid into a deposit account opened with RBFBiH. The funds have been engaged on a revolving basis, and as of June 30, 2020, 200 loans have been disbursed to small economy entities in the Federation of Bosnia and Herzegovina in the total amount of BAM 41,915,699.39, with a loan repayment rate of 98.15 percent.

The repayment period for these loans is 84 months with a grace period of up to 24 months, and an interest rate of one percent. Depending on the size of the company, the amounts of individual loans range from BAM 20,000 to BAM 500,000. In the new situation caused by the coronavirus pandemic, the Federal Ministry, aware of the negative economic consequences, has allowed all beneficiaries of commission loans disbursed through RBFBiH a moratorium of up to six months, or a reprogramming of loan obligations within the originally agreed repayment periods, as well as the possibility of extending the final deadline by up to six months.

The funds allocated under the last public call for the selection of potential beneficiaries of the Program "Credit Incentive for Development, Entrepreneurship and Crafts" in 2020 amount to BAM 4.64 million for 22 companies, which is a significant amount of investment in the economy of the Federation of Bosnia and Herzegovina under the current circumstances. The signatories publicly invited all interested small economy entities planning business investments to follow the announcements on the website of the Federal Ministry of Development, Entrepreneurship and Crafts and apply for the public call which will be published soon, it was announced from this ministry.