FBiH Government and Union Bank: 20 million KM allocated for youth housing loans this year

(Patria) - Deputy Prime Minister of the Federation of BiH and Federal Minister of Finance Toni Kraljević and President of the Management Board of Union Bank d.d. Sarajevo Vedran Hadžiahmetović signed an agreement in Sarajevo on a loan based on which the favorable housing loan line for youth becomes operational.

The Government of the Federation of Bosnia and Herzegovina, at its session yesterday, adopted the Decision on approving a loan to Union Bank d.d. Sarajevo under subordinated conditions from the Budget of the Federation of BiH for 2025 in the amount of 20,000,000 KM.

Union Bank is implementing this loan line in cooperation with the Government of the Federation of BiH for the eighth consecutive year, and in 2025 in the amount of 40,000,000 KM. Housing loans for youth will be disbursed with a repayment period of up to 25 years and a maximum amount of up to 300,000 KM, with a nominal annual interest rate of 2.99 percent, fixed until the end of the loan repayment, with the possibility of an additional reduction in the interest rate due to the birth or adoption of a child.

These funds will be used for the disbursement of the credit line intended for young people to solve their housing issues, which will significantly contribute to the continued resolution of existential issues, influencing the retention of young and educated people in the country. Furthermore, it will contribute to maintaining a socially responsible approach to lending and supporting the economic recovery (housing construction) from negative economic consequences, as well as increasing overall credit activity in the market through the more active participation of this bank.

Within one of the most significant housing loan lines for youth last year, 233 loan applications were approved for a total amount of 41,005,188.70 KM, with an average loan amount of 175,039 KM. The average age of loan beneficiaries is 30.8 years. To date, more than 1,800 loans have been disbursed in a total amount exceeding 213,000,000 KM for young people from 50 cities and towns in the Federation of BiH.

The effects of forming a long-term stable portfolio are the result of cooperation between the majority owner and the bank. Union Bank d.d. Sarajevo expresses particular satisfaction with the announcement of the continuation of the "Housing Loans for Youth" credit line in the year it celebrates 70 years of successful operations and client trust.

Detailed information on housing loans for youth and the start of the credit line implementation is available to interested parties at Union Bank branches and on the bank's website (www.unionbank.ba).