Aid for Small and Medium Enterprises Worth 56 Million Euros

(Patria) - Deputy Chairman of the Council of Ministers and Minister of Finance and Treasury Vjekoslav Bevanda signed a loan agreement today with the Head of the World Bank Office in BiH, Emanuel Salinas, for 56 million euros within the Micro, Small, and Medium Enterprises Recovery Project ("MSME") to mitigate the consequences of the COVID-19 pandemic.
Minister Bevanda emphasized that by signing this loan agreement, the International Bank for Reconstruction and Development will be able to allocate funds to development banks in both entities through which the activities of eligible enterprises will be financed.

"The funds are allocated in a ratio of 60 percent for the Federation of BiH, i.e., 33.6 million euros, and 40 percent for Republika Srpska, i.e., 22.4 million euros. The loan terms are favorable with a repayment period of 15 years, including a five-year grace period," stated Minister Bevanda.

According to this agreement, the project implementers in the Federation of BiH are the Development Bank of FBiH and the Federal Ministry of Development, Entrepreneurship, and Crafts, while in Republika Srpska, the project will be implemented by the Investment-Development Bank of RS and the Ministry of Economy and Entrepreneurship of Republika Srpska.

The goal of this project, which closes on December 31, 2024, is to strengthen the public health system and provide social assistance to the most vulnerable groups affected by the pandemic in Bosnia and Herzegovina. In a special part of the project, banks are tasked with opening credit lines that will, through sub-loans, support companies in overcoming the business crisis caused by the COVID-19 pandemic.

Minister Bevanda expressed gratitude to the World Bank management for supporting the economy in BiH, especially in these extraordinary circumstances, and for contributing to a better quality of life in BiH through their projects. The agreement was signed correspondentally, without the usual ceremonies, due to the epidemiological measures taken to prevent the spread of the COVID-19 virus.