Municipality of Novo Sarajevo and ASA Banka facilitate credit lines to assist entrepreneurs

SARAJEVO, (Patria) - Mayor of the Municipality Nedžad Koldžo and ASA Banka d.d. Sarajevo Management Board member Davor Tomić signed a Business Cooperation Agreement.

ASA Banka d.d. Sarajevo was selected through a Public Call for the selection of a bank for lending funds through a credit line with subsidized/rebated interest rates/profit margins and loan processing fees by the Municipality of Novo Sarajevo to business entities in order to increase the current liquidity of business entities affected by the pandemic and the spread of COVID-19.

Addressing the attendees, Mayor Nedžad Koldžo emphasized that this is one of the measures being implemented through the Public Call, within the Program for mitigating the health, social, and economic consequences of the declared state of natural disaster. For the implementation of this line, ASA Bank has provided funds in the amount of 2,500,000 KM. This is a credit line that will enable entrepreneurs from the area of the Municipality of Novo Sarajevo who meet the criteria of the Public Call (which will be announced by the bank), with the subsidy of the Municipality, to obtain credit funds from ASA Bank without interest rate and loan processing costs. The Municipality will subsidize/rebate the interest rate and loan processing costs for business entities for short-term loans in order to increase the current liquidity of business entities affected by the pandemic and the spread of the COVID-19 virus, emphasized the Mayor.

ASA Banka d.d. Sarajevo Management Board member Davor Tomić thanked the Municipality of Novo Sarajevo and the Mayor for recognizing this bank as a reliable partner.

“The coronavirus pandemic has significantly hindered and slowed down the activities of entrepreneurs, and thus the entire BiH economy. We believe it is extremely important to provide them with assistance and support in order to continue their business operations. It is particularly important to help those business entities that have retained their employees even during the pandemic,” emphasized ASA Banka Management Board member Davor Tomić.

The agreement stipulates that short-term revolving financing for business companies and sole proprietors for current operations will be approved for a period of up to 12 months, with a maximum amount of up to 100,000 KM.

The amount of credit funds will be determined by the commercial bank based on the conducted analysis of the applicants' creditworthiness. The selection of beneficiaries of credit funds will be based on the evaluation of the conditions prescribed by the commercial bank.

Existing business entities headquartered in the Municipality and which are 100% owned by BiH citizens are eligible for the grant, with the aim of retaining employees and new employment, developing or introducing new technologies with the intention of reducing and preventing the spread of negative economic effects caused by the pandemic and the spread of the COVID-19 virus.

Priority in obtaining incentives will be given to business entities that were unable to conduct their activities at full capacity during the pandemic and the spread of the COVID-19 virus, and who did not lay off their employees.

Exceptionally, beneficiaries of this credit line cannot be business entities that: have outstanding tax and municipal obligations to the Municipality of Novo Sarajevo, engage in gambling, the production, processing, or marketing of tobacco products and alcoholic beverages, production activities that have a significant impact on the pollution of the human environment and proven harm to public health, as well as those engaged in the retail trade of weapons, ammunition, and military equipment.