- EBRD unfunded portfolio guarantee of up to €25 million to Raiffeisen Bank in support of local SMEs
- €3 million to be on-lent to households for green investments
- Investments supported by the European Union in the form of technical cooperation, guarantees and incentive grants
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU), in partnership with Raiffeisen Bank Bosnia and Herzegovina, are boosting access to finance for small and medium-sized enterprises (SMEs) and households across the country.
The EBRD is providing Raiffeisen with a €25 million unfunded risk-sharing guarantee, enabling €50 million in new lending to SMEs under the EBRD’s portfolio risk sharing (PRS) product. The guarantee will cover up to 50 per cent of the credit risk on new SME loans issued by Raiffeisen Bank. Backed by technical assistance and first-loss counter-guarantee from the EU’s European Fund for Sustainable Development Plus (EFSD+) Growth for All programme, the initiative targets underserved businesses – including those led by women and young people – and SMEs operating in tourism, agriculture and rural areas. This transaction is the first PRS facility supported by the EFSD+ in the Western Balkans, ahead of a regional roll-out.
By sharing part of the risk with Raiffeisen Bank, the EBRD and EU are helping the bank strengthen its resilience and expand lending to more SMEs using the bank’s own funds. The PRS broadens the spectrum of EBRD products in the market, with an innovative solution designed to reduce risk for the EBRD’s partner financial institutions and to address financing gaps for MSMEs.
In addition, a €3 million EBRD loan will be on-lent to households for energy-saving upgrades in homes. Eligible borrowers can receive up to 20 per cent cashback from the EU on successful completion of their project. Technical assistance, funded by Japan and the EU, will support effective implementation.
This financing is part of the EBRD’s Green Economy Financing Facility (GEFF) for the Western Balkans, which has already helped over 22,000 households improve their energy efficiency. The programme also supports housing associations and construction firms developing high-performance residential buildings.
Stela Melnic, EBRD Head of Bosnia and Herzegovina, said: “This partnership with Raiffeisen Bank, supported by the European Union, marks a significant milestone in our efforts to expand access to finance for underserved businesses in Bosnia and Herzegovina. By sharing risk and combining innovative financial instruments with targeted technical assistance, we are enabling more SMEs and households to invest in their future, whether through business growth or energy-efficient home upgrades. This is the kind of inclusive and green financing the EBRD is proud to champion across the Western Balkans.”
Luigi Soreca, Head of the Delegation of the European Union to Bosnia and Herzegovina, and European Union Special Representative, said: “The signing of these two agreements is yet another example of the European Union’s commitment to providing new opportunities for SMEs across Bosnia and Herzegovina and improving the lives of its citizens. By improving access to finance, especially for businesses outside big cities, and supporting households in making their homes more energy-efficient, we are helping businesses grow and compete, and citizens live better. These initiatives also play an important role in the EU Growth Plan for the Western Balkans by driving green and digital transformation and strengthening the resilience of the private sector. Together, we are laying the foundation for a more sustainable and prosperous future for all citizens of Bosnia and Herzegovina.”.
Rainer Schnabl, CEO of Raiffeisen Bank Bosnia and Herzegovina, said: “We are proud to be the first bank in Bosnia and Herzegovina to join the EBRD’s portfolio risk sharing programme. This cooperation enables us to expand lending to small and medium-sized enterprises, especially those led by young people and women, and to reach regions beyond the main urban centres. At the same time, through the Green Economy Financing Facility, we are supporting households that invest in energy-efficient solutions, helping to lower costs and contribute to a more sustainable future. As Raiffeisen Bank marks 25 years of being a good neighbour in Bosnia and Herzegovina, this initiative reflects our longstanding commitment to fostering entrepreneurship, competitiveness and the green transition of country’s economy.”
The EBRD has invested more than €3.4 billion in 252 projects in Bosnia and Herzegovina since it began operating there in 1996. The Bank’s strategic priorities in the country are to promote the green economy, support the competitive development of the private sector and foster regional integration.