Bosnian SMEs, MidCaps and local authorities to benefit from EUR 30 million EIB loan to Intesa Sanpaolo Bosnia and Herzegovina
- Favourable loans will be available to SMEs & MidCaps in industry, tourism, services and agriculture;
- Local authorities looking to finance projects in environment protection, energy efficiency, knowledge economy and infrastructures are also eligible under the EIB loan;
- Since 2005, almost third of all investments in Bosnia and Herzegovina came from the EIB;
The European Investment Bank (EIB) will provide EUR 30 million to Intesa Sanpaolo Bosnia and Herzegovina for a credit line tailor-made for local SME and MidCaps in industry, tourism, services and agriculture sectors, and projects financed by local authorities in environment protection, energy efficiency, knowledge economy and infrastructure. This is the first tranche of a EUR 60 million loan approved by EIB for Intesa Sanpaolo Bosnia and Herzegovina.
The loan supports Bosnia and Herzegovina in addressing some of the key priorities towards its full membership in the EU – education, employment and social policies.
Projects creating jobs for local youth, under the European Youth Employment and Training for the Western Balkans (“EYET”) initiative, will also be eligible for financing t under the EIB-Intesa Sanpaolo BIH agreement, signed today in Sarajevo. Intesa Sanpaolo is encouraged with even more favourable financial conditions to support employment and vocational training of young people in Bosnia and Herzegovina representing an effort by the EIB in providing hands-on support for the local economy to tackle this key social and economic issue.
Matteo Rivellini. Head of Division for EIB Lending Operations in Croatia, Slovenia and Western Balkans said: “The European Investment Bank continues to support the economic and social development of Bosnia and Herzegovina on the way to full membership in the European Union. Today, together with Intesa Sanpaolo, the EIB created a new source of loans for local SMEs and MidCaps, as well as for local authorities looking for favourable financing for their projects and, in turn, growth and creation of new employment opportunities, especially for youth. The EIB looks forward to new projects determined to support Bosnia and Herzegovina in creating new economic opportunities for its citizens.”
Almir Krkalić, President of the Management Board of Intesa Sanpaolo Banka BiH said: "The Agreement signed today on the new credit line for SME, provided by the European Investment Bank, is yet another confirmation of our good and long-lasting cooperation in financing projects in B&H. We are very pleased that Intesa Sanpaolo Banka B&H will be able to offer credit support to companies and local bodies, which meet the set conditions, and in such way to contribute to further development of B&H".
This is the fifth such credit line provided to Bosnian SMEs, MidCaps and local authorities by the EIB through Intesa Sanpaolo BIH. To date, the EU`s bank has invested EUR 185 million through Intesa Sanpaolo BIH alone to enable growth of the local SMEs and MidCaps sector and support employment generation in Bosnia and Herzegovina. Since the start of the EIB operations in Bosnia and Herzegovina in 1977, the EIB invested more than EUR 2.5billion supporting 68 projects in both public and private sectors mostly in transport, infrastructure, SME and energy sectors.
Since 2005, the EIB invested a total of EUR 715 million in Bosnia and Herzegovina through similar credit lines with local commercial banks, or almost one-third (31%) of overall financing activity in Bosnia and Herzegovina during the period.