The European Bank for Reconstruction and Development (EBRD), a London-based development finance institution, will be lending EUR 5 million (approximately USD 6.7 million) to Sparkasse Bank BiH to support Bosnia and Herzegovina’s preparation for possible membership in the European Union (EU). The loan, which has been extended under EBRD’s Western Balkans Private Sector Support Facility, will support investment meeting EU standards, which include environmental protection, product quality and occupational health and safety. In addition to the loan, Sparkasse Bank will also receive technical assistance and grant financing from the European Commission, the executive body of the EU, and EBRD’s Western Balkans Multi-Donor Fund.
Sanel Kusturica, CEO of Sparkasse Bank BiH, said: “The new loan is in line with our work to intensify financing of the real economy which was our focus over the last years. All the funds will be used to support small and medium enterprises in the projects that comply with the EU directives that will help to improve the quality of business and will be one of the steps towards European integration.”
Headquartered in Sarajevo, Bosnia and Herzegovina, Sparkasse Bank BiH was founded in 1999. Owned by the Austrian Steiermärkische Sparkasse group, it provides a range of financial services, including savings, loans, cash management and foreign exchange. As of December 2010, Sparkasse Bank reported total assets of BAM 777 million (about USD 540 million), a net income of BAM 1.83 million (USD 1.27 million) and approximately 170,000 clients.
By Kristha Abores, Research Associate
About European Bank for Reconstruction and Development (ERBD):
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2010, EBRD invested in 386 projects with a total value of EUR 22 billion.
About Sparkasse Bank:
Headquartered in Sarajevo, Bosnia and Herzegovina, Sparkasse Bank BiH was founded in 1999. Owned by the Austrian Steiermärkische Sparkasse group, it provides a range of financial services, including savings, loans, cash management and foreign exchange. As of December 2010, Sparkasse Bank reported total assets of BAM 777 million (about USD 540 million), a net income of BAM 1.83 million (USD 1.27 million) and approximately 170,000 clients.
Sources and Additional Resources:
[1] European Bank for Reconstruction and Development Press Release: “EBRD and Sparkasse Bank Bih Team up To Support Real Economy in Bosnia And Herzegovina”, http://www.ebrd.com/pages/news/press/2011/110926b.shtml
MicroCapital.org article, September 27, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Works With African Development Bank, Islamic Development Bank to Plan Expansion to Support Emerging Arab Democracies”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-works-with-african-development-bank-islamic-development-bank-to-plan-expansion-to-support-emerging-arab-democracies/
MicroCapital.org article, September 23, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), FMO of the Netherlands, Bank im Bistum Essen eG of Germany Syndicate $8m Loan for Bank Eskhata of Tajikistan For Microfinance, Small and Medium-Sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-fmo-of-the-netherlands-bank-im-bistum-essen-eg-of-germany-syndicate-8m-loan-for-bank-eskhata-of-tajikistan-for-microfinan/
MicroCapital.org article, July 8, 2011, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $3m in Local Currency Somoni to Microfinance Provider Imon International of Tajikistan to Support Small Businesses”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-3m-in-local-currency-somoni-to-microfinance-provider-imon-international-of-tajikistan-to-support-small-businesses-10/
MicroCapital Universe Profile: European Bank for Reconstruction and Development, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Eur…
MicroCapital Universe Profile: Sparkasse Bank BiH, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sparkasse+Bank+BiH
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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