By Rezo Bitsadze

The European Bank for Reconstruction and Development (EBRD) is providing a €7 million(US$7.8million) loan to UniCredit Bank d.d. Mostar in Bosnia and Herzegovina. Funds will be lent through the EBRD’s small and medium-sized enterprise (SME) Go Green programme that is supported by the European Union (EU).

The proceeds will enable UniCredit to continue supporting local SMEs’ investments in green and sustainable technologies. Enhanced access to green finance will support the competitiveness and export potential of local businesses, providing them with opportunities to improve their products and services in line with the highest EU climate, environmental protection and other standards.

The EU will provide incentives to help bridge the gap between high upfront costs and future return on investment. Upon successful completion of their projects, financed SMEs will be eligible for a grant of between 10 to 15 per cent of the loan amount. The EU will also provide grants to train UniCredit bankers on new financial products and to support local businesses with project implementation.

The first phase of the SME Go Green programme will provide an estimated €120 million of EBRD financing to local banks in the Western Balkans for on-lending to approximately 3,400 SMEs. The EU will support these investments with €25 million, with more funding expected in the subsequent phases of the programme.

UniCredit Bank d.d. Mostar is a longstanding partner of the EBRD, with a strong track record of supporting local SMEs in Bosnia and Herzegovina. With 70 branches across the country, UniCredit Bank d.d. Mostar is well placed to provide financing to businesses beyond the largest cities.

To date, the EBRD has invested more than €3 billion through 218 projects in Bosnia and Herzegovina.