-
First credit line under the SME Go Green programme in the Western Balkans -
EBRD loan of €7 million, EU grant incentives for SMEs in Bosnia and Herzegovina -
Funds will be on-lent by Raiffeisen Bank Bosnia and Herzegovina
Small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina will be able to apply for loans and grants to help them improve their competitiveness and reduce their carbon footprint, thanks to the new SME Go Green programme launched by the European Bank for Reconstruction and Development (EBRD) with the support of the European Union (EU).
The programme launch was marked by the signing of a €7 million credit line to Raiffeisen Bank Bosnia and Herzegovina, which will on-lend the funds to local SMEs. Businesses will be able to apply for funds to improve their energy and resource efficiency by investing in industrial premises, equipment, software, electric vehicles or renewable energy measures. On successful completion of their investment project, SMEs will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain. The grant incentives are being provided by the European Union.
Rainer Schnabl, CEO of Raiffeisen Bank Bosnia and Herzegovina, said the bank was pleased to extend its long-lasting partnership with the EBRD, adding: “By supporting these projects together with our clients, we are making sustainable transition happen and contributing to the achievement of the Sustainable Development Goals, especially in the area of environmental protection.”
Manuela Naessl, EBRD Head of Bosnia and Herzegovina, said: “The SME Go Green programme was developed to assist Bosnian firms in the green transition and to equip them with tools to compete in the modern economy. With this programme, we wish to support companies in their efforts to offer their clients products and services that meet the highest EU climate, environmental protection and other standards.”
Phase I of the SME Go Green Programme will provide an estimated €120 million of EBRD financing to local partner financial institutions in the region for on-lending to approximately 3,400 SMEs for investments in climate-smart solutions. The EU will support these investments with €25 million in grants through the Western Balkans Investment Framework (WBIF) to scale-up green economy investments, with more funding expected in the following phases of the programme.
Ambassador Johann Sattler, Head of the EU Delegation and EU Special Representative in Bosnia and Herzegovina, said: “SMEs are a crucial engine for economic growth and prosperity. We are therefore glad to be supporting the SME Go Green Programme and assisting SMEs in modernising and taking advantage of the opportunities of the future. The green and digital transformation of SMEs will help businesses become more competitive in local and international markets.”
At least 70 per cent of the proceeds of the credit line will be used to finance green technologies. One-third will support investments that enhance the greening of agriculture and agribusiness value chains, while one-quarter will go to women-led SMEs.
To date, the EBRD has invested more than €3 billion through 218 projects in Bosnia and Herzegovina.
