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EBRD, Volksbank support small businesses in Bosnia & Herzegovina
Small and medium-sized enterprises and local entrepreneurs wishing to start up businesses in Bosnia and Herzegovina will benefit from more access to finance following a €2.5 million loan from the European Bank for Reconstruction and Development to Volksbank BH d.d. Sarajevo, a subsidiary of Österreichische Volksbanken AG Austria.
The EBRD loan is the first to be signed under a €150 million facility approved by the Bank's Board of Directors in December 2002. Under the facility, the EBRD will provide credit lines to subsidiaries of Volksbanken in Bosnia and Herzegovina, the Czech Republic, Croatia, Hungary, Romania, the Slovak Republic and Slovenia. The funds will be used to provide up to twelve years' financing to Volksbanken's clients in those countries.
Speaking in Sarajevo, Serban Ghinescu, head of the EBRD office in Bosnia and Herzegovina, said the credit line builds on the ongoing successful relationship between the EBRD and Volksbanken. By working with Volksbank BH d.d. Sarajevo, the EBRD is strengthening competition and providing local entrepreneurs with access to finance to help start or grow their businesses. Mr Ghinescu added that the development of SMEs is crucial for Bosnia and Herzegovina's progress towards a fully fledged market economy.
Set up in 2000, Volksbank BH d.d. Sarajevo was the first subsidiary of a western bank to be established in Bosnia and Herzegovina. With more than 27,000 clients, the bank is quickly establishing itself as a leading player in the country.
Reinhold Kolland, General Manager of Volksbank BH d.d. Sarajevo, said the EBRD credit line is instrumental for developing the bank's operations in Bosnia and Herzegovina. Volksbanken's ambitious strategy for BiH is part of wider development plans in central and eastern Europe. He added that Volksbank is a strong customer-oriented bank, and that the credit line will help it reach its major target clients - SMEs and retail customers.
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