The European Union, in partnership with the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank, has signed two financial agreements aimed at improving access to finance for small businesses and households across Bosnia and Herzegovina (BiH). The agreements focus on supporting small businesses led by women, young people, and entrepreneurs outside major cities, as well as households seeking to invest in energy efficiency improvements. Ambassador Luigi Soreca, Head of the EU Delegation and EU Special Representative in BiH, attended the signing ceremony, highlighting the EU’s commitment to fostering economic growth, green transition, and improved living standards in the country.
The first agreement includes a €25 million unfunded risk-sharing guarantee from the EBRD, backed by €2 million in EU grants to cover part of the credit risk. This joint initiative is expected to unlock up to €50 million in favorable loans for small businesses, particularly in sectors such as tourism and agriculture, enabling them to invest and grow. By reducing lending risks, the guarantees make it easier for Raiffeisen Bank to extend credit to businesses that may otherwise struggle to access financing, especially those outside urban centers.
The second agreement focuses on energy efficiency for households, with a €3 million loan from EBRD providing affordable financing for home improvements. Eligible households can receive up to 20% of the loan amount back from the EU upon successful completion of energy-saving projects, which include upgrading insulation, replacing old windows, and modernizing heating systems. These measures are expected to reduce energy consumption and lower utility costs, while promoting sustainable practices.
Officials emphasized the broader impact of these initiatives. Ambassador Soreca noted that improving access to finance for SMEs and households supports the EU Growth Plan for the Western Balkans, drives green and digital transformation, and strengthens private sector resilience. Stela Melnic, EBRD Head of Bosnia and Herzegovina, highlighted that combining risk-sharing with technical assistance enables more SMEs and households to invest in their future, fostering inclusive and sustainable growth. Rainer Schnabl, CEO of Raiffeisen Bank BiH, added that the programs support entrepreneurship, competitiveness, and the country’s green transition, reflecting the bank’s long-standing commitment to local communities.
These agreements are part of the EU’s broader support for Bosnia and Herzegovina, which has included around €110 million in investments since 1996 to enhance competitiveness, innovation, green technologies, and digital upgrades. Through the €400 million Western Balkans Guarantee Facility, the EU works with local banks to reduce financing costs and risks, enabling local businesses to access funding for growth and sustainable development.
Since 1996, the EBRD has invested over €3.3 billion in 249 projects in BiH, focusing on green economy initiatives, private sector competitiveness, and regional integration. Together, the EU, EBRD, and Raiffeisen Bank aim to strengthen financial inclusion, support SMEs and households, and drive Bosnia and Herzegovina’s transition to a greener and more digital economy.
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