€10 million credit line to Intesa Sanpaolo Bank

Author(s):Ina Coretchi
Date: 29 August 2012

In the current challenging economic climate when the availability of financing for small businesses in Bosnia and Herzegovina is limited, the EBRD is continuing to support the country’s real economy sector with a €10 million credit line to Intesa Sanpaolo Bank for on-lending to small and medium-sized enterprises (SMEs).

Majority-owned by Intesa Sanpaolo Holding International, Intesa Sanpaolo Bank is the fifth largest banking group in Bosnia and Herzegovina, with a nationwide network and a growing portfolio.

The EBRD loan, extended under the EBRD’s Western Balkans and Croatia Financing Framework*, will assist Intesa Sanpaolo Bank in meeting the demand from private sector enterprises for external financing to support them during the economic crisis.

“In the current environment when access to finance for small and medium companies is becoming limited, the EBRD is pleased to continue its successful cooperation with Intesa Sanpaolo Bank and to provide a new credit line for SMEs in Bosnia and Herzegovina. We expect this project to have an immediate impact on the availability of credit,” said Libor Krkoska, Head of the EBRD office in Sarajevo

"It is of great importance for us as a bank, and in particular for our clients, that we can offer loans to support economic activities in times when it is difficult to ensure stable and long-term financing sources. The EBRD as our long-standing partner will, with this credit line, enable companies in Bosnia and Herzegovina to access, through Intesa Sanpaolo Bank, the necessary funds for their continued operation and development. We are confident that in the future, together with the EBRD, we will continue the successful and continuous financing of the Bosnian economy," said Almir Krkalić, Director of Intesa Sanpaolo Bank BiH.

The EBRD has provided Intesa Sanpaolo Bank with similar credit lines in the past, most recently a   €20 million facility in 2010.

Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed more than €1.4 billion in over 100 projects in key sectors of the country’s economy, mobilising additional investments of more than €1.6 billion.

*Western Balkans and Croatia Financing Framework is a €250 million framework aimed at supporting banks and non-bank financial institutions in Albania, Bosnia and Herzegovina, FYR Macedonia, Montenegro, Serbia and Croatia.
Source:www.ebrd.org