BAKU, Azerbaijan, October 16. The European Bank
for Reconstruction and Development (EBRD) and the European Union
(EU) are strengthening access to finance for small and medium-sized
enterprises (SMEs) and households in Bosnia and Herzegovina through
a new partnership with Raiffeisen Bank, Trend reports.
Under the initiative, the EBRD is providing Raiffeisen with a 25
million euro unfunded risk-sharing guarantee, unlocking 50 million
euros in new SME lending through its Portfolio Risk Sharing (PRS)
product.
The guarantee covers up to 50% of credit risk on new SME loans,
targeting underserved businesses, including those led by women and
young entrepreneurs, as well as SMEs in tourism, agriculture, and
rural areas. The scheme is backed by technical assistance and a
first-loss counter-guarantee from the EU’s European Fund for
Sustainable Development Plus (EFSD+) Growth for All programme,
marking the first PRS facility supported by EFSD+ in the Western
Balkans.
In addition, a 3 million euro EBRD loan will support households
investing in energy-saving home upgrades, with eligible borrowers
able to receive up to 20% cashback from the EU upon project
completion. Technical assistance funded by Japan and the EU will
help ensure smooth implementation. The financing is part of the
EBRD’s Green Economy Financing Facility (GEFF), which has already
helped over 22,000 households in the Western Balkans improve energy
efficiency.
Stela Melnic, EBRD Head for Bosnia and Herzegovina, highlighted
the partnership’s significance: “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 champions across the Western Balkans.”
Luigi Soreca, Head of the EU Delegation and Special
Representative in Bosnia and Herzegovina, added: “These agreements
demonstrate the EU’s commitment to providing new opportunities for
SMEs and supporting households in making their homes more
energy-efficient. These initiatives drive green and digital
transformation and strengthen the resilience of the private sector,
laying the foundation for a more sustainable and prosperous
future.”
Raiffeisen Bank CEO Rainer Schnabl said the cooperation enables
the bank to expand lending to SMEs, particularly those led by young
people and women, and to support households investing in energy
efficiency.
Since 1996, the EBRD has invested over 3.4 billion euros in 252
projects in Bosnia and Herzegovina, focusing on green economy
development, private sector competitiveness, and regional
integration.