EU and EBRD support businesses and households in BiH to access financial funds
The Head of the EU Delegation and EU Special Representative in BiH, Ambassador Luigi Soreca attended the signing ceremony of two financial agreements between the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank, aimed at improving access to finance for small businesses and households across Bosnia and Herzegovina. These agreements, supported by the European Union, are in particular targeted at small businesses led by women, young people, and entrepreneurs outside major cities, as well as households looking to invest in energy efficiency.
The first Agreement includes a €25 million unfunded risk-sharing guarantee from the EBRD which will be backed by €2 million in grants from the European Union to cover part of the credit risk. This joint initiative between the EU, EBRD and Raiffeisen bank support aims to unlock up to €50 million in favourable loans to assist small businesses, particularly those outside big cities. The guarantees will support companies in key sectors like tourism and agriculture to get the loans they need to invest and grow. The EU-supported guarantees reduce the risk for lenders, making it easier for Raiffeisen Bank to extend credit to businesses that might otherwise struggle to secure funding.
The second agreement focuses on energy efficiency in homes. A €3 million loan from EBRD will be used to provide affordable financing for energy efficiency interventions. Households that meet the requirements will receive up to 20% of the loan amount back as a refund from the EU after the successful completion of the project. This initiative will help BiH households replace old windows, improve insulation, and upgrade heating systems, ultimately reducing energy consumption and utility bills.
“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 to make 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 BiH,” said Ambassador Soreca.
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.”
Rainer Schnabl, CEO of Raiffeisen Bank in 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 to 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 long-standing commitment to fostering entrepreneurship, competitiveness and the green transition of country’s economy."
These initiatives are part the EU broader ongoing support to improve access to finance and reduce the risks of investing in Bosnia and Herzegovina. Since 1996, the EU has invested about €110 million to help small businesses in Bosnia and Herzegovina become more competitive through various programmes. In partnership with the EBRD, EU grants have supported innovation, green technologies, and digital upgrades across the country. As part of a €400 million contribution to the Western Balkans Guarantee Facility, the EU is working closely with local banks to lower financing costs and risks for investors. Many of these guarantees will soon be available to local businesses through partner banks, supporting growth, jobs, and the country’s shift to a greener and more digital economy.
The EBRD has invested more than €3.3 billion in 249 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.