The EBRD and its largest donor partner, the European Union, are expected to provide financing of 20 million euro ($22 million) to small and medium-sized enterprises (SMEs) in EU candidate Bosnia and Herzegovina to help them meet the bloc's market requirements, the lender said.
The financing under the EU/EBRD SME Competitiveness Support Facility, to be provided through three local partner banks, is complemented by EU grant funds to cover consultancy costs and financial incentives to sub-borrowers, the EBRD said in a statement on Monday.
The EU's General Affairs Council officially accepted Bosnia's membership bid last month and instructed the European Commission to give its assessment of the membership application.
The council welcomed Bosnia's meaningful progress in the implementation of the reform agenda and called on the country to continue to implement socio-economic reforms, reforms in the area of rule of law and public administration.
“We are very proud of this important programme which allows us to address key issues facing local businesses in a targeted and focused way. It demonstrates what the EU and EBRD can do working together and will set standards in easily accessible support in areas where it is much needed”, Ian Brown, EBRD Head of Bosnia and Herzegovina, said in the statement.
One of the benefiting SMEs is Omorika – a PET (clear plastic) packaging producer from Doboj, in the north of the country, which received a loan and technical cooperation support to upgrade their health and safety, environmental protection and product quality measures – all in line with EU standards.
Omorika is modernising its facilities to meet EU requirements so it will be ready once the country joins the EU.
Using the loan the company purchased two pieces of equipment – a water chiller and PET drier. With these new machines, the production process is more stable, and the final products are of higher quality. In terms of environmental compliance, the new drier doesn’t emit gases contributing to ozone depletion, according to the statement.
“The extensive EBRD experience in large scale regional initiatives, combined with hands on knowledge of EU SME Policy seeks to create maximum benefits for SMEs in Bosnia and Herzegovina”, said Melvin Asin, head of cooperation, EU Delegation to Bosnia and Herzegovina. “It also furthers synergies with relevant EU policies, by facilitating the introduction of EU standards through the provision of adequate advisory services as well as better access to loan finance.”
Bokan Dusan, the owner of Omorika, said: “The EBRD provided us with strong support. They made it possible for us to purchase modern and new equipment, allowing us to make savings in energy. Also they helped us train our production employees, and we’ve managed to become a lot more competitive in the European market, when it comes to our products, their delivery and sales.”