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EIB supports Bosnian SMEs with €20 million
The European Investment Bank (EIB), the bank of the European Union, has signed a €20 million loan under its new branch, EIB Global. Through Intesa Sanpaolo Banka BiH, the loan aims to foster youth employment, gender equality and socially inclusive practices among small and medium-sized enterprises (SMEs) and mid-caps (companies with a capitalisation of between €2 million and €10 million).
These funds will enable Intesa Sanpaolo BiH to on-lend to local companies that are committed to improving the social impact of their businesses and creating long-term leadership and employment opportunities for women, young people and segments of the population that face higher entry barriers in the labour market.
This innovative loan includes a performance-based reward mechanism for companies that meet specific targets to foster leadership, employment and professional development opportunities for women, young people and vulnerable groups (e.g. people with disabilities, refugees, etc.). Under this incentive scheme, tailor-made social impact objectives will be agreed with each company benefiting from the EIB financing. A financial reward, matching the level of social impact generated, will be distributed to those who meet these targets.
The reward mechanism will be financed via a €3.3 million grant provided under the EIB’s Economic Resilience Initiative Fund, aimed at boosting job creation and sustainable and inclusive private sector growth. A comprehensive technical assistance programme will be created to support the project’s implementation and the achievement of the social impact objectives agreed with SMEs and mid-caps.
This will be the sixth cooperation between the EIB and Intesa Sanpaolo BiH in support of the private sector in BiH which has resulted in the disbursement of over €238 million and provided support to 339 companies so far. To date, the EIB has provided €860 million to the private sector in Bosnia and Herzegovina, which has helped sustain close to 100,000 jobs.
Source: EIB
Photo credits: EIB
