Favorable loans in the amount of 9.6 million KM for the improvement of the economy in FBiH
The Government of FBiH has adopted the Program for spending the funds of the Permanent Revolving Fund with Union Bank d.d. Sarajevo, the Federal Ministry of Energy, Mining and Industry for long-term financing of projects through the allocation of loans for 2022, in the amount of about 9,660,000 KM.
The main goal of the Program is, as explained, the improvement and development of the FBiH economy, creating a more favorable business environment, through the implementation of adopted strategic and primary documents. One of the goals is to encourage entrepreneurs to invest in tangible assets for the purpose of modernization and expansion of existing production capacities, as well as the establishment of new production plants and business units, subject to retaining or increasing the number of employees.
Expected effects are growth of new employees, labor productivity and industrial production index, increase of production capacities, introduction of new more advanced and improvement of existing technologies and technological procedures, development of new products, production processes or services with higher added value, increase of competitiveness and increase of turnover.
The funds will be allocated to companies from the metal, electrical and automotive industries, the construction materials and non-metals industries, the wood, paper and graphics industries, textiles, clothing, leather and footwear, as well as the chemical and pharmaceutical industries, and the rubber and plastics industries.
Beneficiaries can be companies from these sectors based in the FBiH, and they must be registered at least one year before submitting an application for funding under the Program.
The funds are of a credit nature, with a deferral of payment of up to 12 months, and an annual interest rate of 0.5 percent. Beneficiaries return the allocated funds in a minimum of 24 and a maximum of 60 equal monthly annuities. The lowest amount of credit funds granted to companies is 100,000 KM, and the highest is 900,000 KM.
The program lasts until the funds are spent, ie until the day of the adoption of the FBiH Budget for 2023, and no later than the end of the fiscal year. Funds are allocated on the basis of a public call, which will define the conditions for application, criteria for allocating funds, the manner of reviewing applications, as well as the list of required documentation that must be attached to the application for funding.