Information on the Programs of the Government of the Federation of BiH for the Improvement of the Economy

Information on the Programs of the Government of the Federation of BiH for the Improvement of the Economy

05/27/2022
The Chamber of Commerce of the Federation of BiH informs economic entities that the Government of the Federation of BiH adopted certain decisions and programs for the improvement of the economy at the 316th Session, which will be implemented through public calls in 2022.


Interest regression through the Guarantee Fund


The Program for spending the funds determined in the FBiH Budget for 2022 to the Federal Ministry of Energy, Mining and Industry on the position of subsidies to private companies and entrepreneurs was adopted, and for regressing interest through the Guarantee Fund in the amount of 5,200,000 KM. This program is the result of the efforts of the Government of the FBiH to continue finding measures to assist the economy of the Federation of BiH due to difficulties in the operation of companies.


The main goal of the Program is to enable users who are indebted, or will be indebted in 2022 under credit guarantee programs for large companies and exporters, to receive grant funds in the name of subsidizing part of the interest costs. Part of the interest on loans will be subsidized, on a quarterly basis of up to 2.5 percent.


All companies that are beneficiaries of loans for 2020 and 2021, as well as those that have applied or will apply in 2022, have the right to interest rebates. The Federal Ministry of Energy, Mining and Industry will not issue a public call, since the users of the guarantee fund will automatically be given the opportunity to use the funds for interest regression. Under this program, loan users acquire the right to regress interest rates for the first, second, third and fourth quarters of 2022, if they have duly settled their previous loan obligations.


Subsidies will be approved to credit users until the end of the fiscal year, ie until 31.12.2022. years.
The subsidy procedure will be conducted by refunding part of the interest on loans approved for programs to maintain current liquidity and the current level of employment, working capital, completion of already started investments, as well as starting new business activities and growth and development of existing ones, increase competitiveness. development and introduction of innovations, new employment, purchase of land, business premises and business shares, refinancing of existing credit and financial leasing obligations.


The Development Bank of FBiH and the Federal Ministry of Energy, Mining and Industry will define mutual relations by an agreement on the implementation of interest regression activities through the Guarantee Fund.


The Federal Ministry of Energy, Mining and Industry will submit reports to the Federal Ministry of Finance and the Government of the FBiH in accordance with the Law on Execution of the FBiH Budget for 2022 and the Program.

Program for spending the funds of the Permanent Revolving Fund at Union Bank d.d. Sarajevo


The Program for spending the funds of the Permanent Revolving Fund at Union Bank d.d. was adopted. 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.


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