Bosnian Minister of Finance and Treasury Vjekoslav Bevanda signed a loan agreement worth €56mn within the Recovery Support Project for micro, small and medium-sized enterprises (MSMEs) to mitigate the effects of the COVID-19 pandemic with the Head of the World Bank Office in Bosnia & Herzegovina Emanuel Salinas on February 8. 

The goal of the 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. In a special part of the project, banks are tasked with opening credit lines that will support companies through sub-loans to overcome the business crisis caused by the COVID-19 pandemic.

Bevanda stressed that the signing of the loan agreement will enable the International Bank for Reconstruction and Development (IBRD) to allocate funds to development banks in both Bosnia entities to finance the eligible companies, said the Council of Ministers of Bosnia & Herzegovina on its website. The agreement was signed without the usual ceremonies due to epidemiological measures to prevent the spread of the coronavirus.

“The funds have been allocated in the ratio of 60% for the Bosnian Federation, €33.6mn, and 40% for the entity of Republika Srpska, €22.4mn. The terms of the loan are favourable with a repayment period of 15 years including a five-year grace period,” said Bevanda.

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