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EBRD and UPI Banka support SMEs in Bosnia and Herzegovina
Second credit line will meet growing demands of small business entrepreneurs
Small and medium-sized business entrepreneurs in Bosnia and Herzegovina will have more access to finance following a €2.5 million credit line from the EBRD to UPI Banka, a medium-sized bank in the country.
The loan is the EBRD's first to be signed under the recent extension of a facility to support the growth and development of small and medium-sized enterprises (SMEs) in Bosnia and Herzegovina and its second credit line to UPI Banka. The facility has five participating banks, including UPI banka, which have provided €12 million to more than 70 entrepreneurs. Under its first €2.5 million credit line, UPI Banka financed the development of 15 SMEs across the country.
Serban Ghinescu, head of the EBRD's office in Sarajevo, said the second credit line builds on the successful relationship between the EBRD and UPI Banka, and that both institutions share the same ambitions to do more for SMEs. Mr Ghinescu said the EBRD will continue to support SMEs in Bosnia and Herzegovina to meet the growing demands of local entrepreneurs, and at the same time emphasised the need for the authorities to do more to improve the country's business climate.
The facilities have benefited from substantial financial support from the Italian Government, which has contributed €5.4 million for on-lending to SMEs, and has provided up to €2.4 million for technical assistance. Over €1.5 million of these funds have already been used to finance Italian consultants to work with local banks to help them, and their clients, employ the EBRD credit lines, and to help improve internal procedures, credit analysis and business planning.
Mirsad Letic, General Director of UPI Banka, said the bank has good working relations with the EBRD. He said the bank is confident that the second credit line, together with the EBRD's
€2.4 million stake in UPI Banka signed last month, will help UPI Banka achieve its main target, to finance the development of the SMEs in Bosnia and Herzegovina.
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