EBRD loan of up to €20m to UniCredit Bank a.d. Banja Luka for on-lending, to support companies affected by economic impact of coronavirus on local economy
The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €20 million to UniCredit Bank a.d. Banja Luka to help combat the economic impact of the coronavirus pandemic.
The financing will be used for on-lending to local businesses in need of short-term working capital or liquidity support following a dramatic reduction in economic activity after the imposition of far-reaching public health measures in Bosnia and Herzegovina. The loan will contribute to the continued functioning of the economy by loosening pressure on liquidity and will support the private sector to overcome the direct implications of the pandemic.
UniCredit Bank Banja Luka is a universal commercial bank operating in the Republika Srpska. Together with UniCredit Bank d.d. Mostar, which operates under the laws of the Federation of Bosnia and Herzegovina, the banks jointly have more than 25 per cent market share as the largest banking group in Bosnia and Herzegovina.
The EBRD loan comes under the Bank’s Resilience Framework, a set of supporting measures for existing clients affected by the coronavirus crisis. Following the outbreak of the pandemic the EBRD significantly stepped up its engagement and reported record commitments of more than €5 billion in the first six months of the year, compared with €3.7 billion a year earlier. The Bank expects to dedicate the entirety of its investment of up to €21 billion in the period 2020-21 to combat the economic impact of Covid-19.
Since it began operations in Bosnia and Herzegovina in 1996, the EBRD has invested more than €2.6 billion in 181 projects in the country.
Source: Company Press Release