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Add to Preferred SourcesThe European Investment Bank (EIB) will provide EUR 25 million loan to Raiffeisen Leasing Bosnia and Herzegovina, supporting new lending to small and medium-sized companies (SMEs) in the country.
Raiffeisen Leasing will use the loan to finance investment projects and working capital of companies in the industry, tourism, agriculture, services sectors, encouraging in particular investments promoting youth employment under the European Youth Employment and Training for the Western Balkans (“EYET”) initiative. Local authorities will also benefit of the loans to finance investments in the fields of environmental protection, healthcare, and education. According to EIB estimates, the loan will support 4,450 jobs (including existing jobs and new jobs created) and approximately 445 SMEs.
An agreement to lend the first tranche of EUR 15 million was signed on October 19 in Sarajevo by Matteo Rivellini, Head of Division at EIB in charge of Western Balkans, Croatia, and Slovenia and Karlheinz Dobnigg, CEO of Raiffeisen Bank Bosnia and Herzegovina.
Mr. Rivellini said: “This loan will also sustain youth employment in the country, thus addressing the root causes of potential youth migration. The signature comes at a pivotal time for the Bank’s commitment to Bosnia and Herzegovina: starting from January 2019, the EIB will place one Desk Officer in Sarajevo to further enhance the European support to Bosnia and Herzegovina and foster growth, cohesion, and connectivity in the country and in the whole region.”
Mr. Dobnigg said: “By this credit line, we will support the projects in the fields of environment protection, industry, health, and education, which also fully reflects our sustainability strategy. We are committed to sustainable entrepreneurship as well as to the creation of wealth by establishing a framework of sustainable finance”
SMEs are the backbone of Bosnia and Herzegovina’s economy. Raiffeisen Bank and Raiffeisen Leasing have long been important partners of these businesses.
Original source: EIB
Published on 19 October 2018