The FINANCIAL -- The EBRD is extending a €5 million loan to Addiko Bank a.d. Banja Luka to support the growth and development of local small businesses in Republika Srpska, one of the two entities of Bosnia and Herzegovina.
The financing will be provided in the form of individual credits to micro, small and medium-sized enterprises. Sources of long-term financing remain limited in Bosnia and Herzegovina and this remains a major obstacle for the growth of the private sector, according to the EBRD.
Ian Brown, EBRD Associate Director, Head of Bosnia and Herzegovina, said: “We are very pleased to starting this cooperation with Addiko Bank Banja Luka today as it will allow us both to support the development of the bank and strengthen the real economy. It is absolutely essential that the talents and engagement of private entrepreneurs in Bosnia and Herzegovina are encouraged and bolstered. Our loan is one such example and we hope many more will follow.”
Mario Ivanković, CEO of Addiko Bank a.d. Banja Luka, said: “With this financing, the EBRD is providing additional support for our business model but also for the local banking sector in general. As one of the significant market players, Addiko Bank Banja Luka is committed to improving its business operations and strengthening its position in this market. We are glad that this arrangement will be primarily used for supporting the SME sector as a driver of the local economy, but indirectly also supporting local communities and their economic development.”
Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has invested more than €2 billion in over 145 projects in the country. The Bank focuses on supporting restructuring and expansion of the local private sector, forging closer links with wider regional markets and promoting a more efficient and sustainable use of resources.