ProCredit Bank has entered into a Guarantee Line Agreement with the United States International Development Finance Corporation to improve access to finance for start-ups and diaspora-related micro, small and medium-sized enterprises (MSMEs) in Bosnia and Herzegovina.
Who is the Guarantee Line intended for?
Non-sovereign, private enterprises that are MSMEs established under Bosnia and Herzegovina law, including their related legal entities, that also satisfy one or both of the following categories:
- MSMEs that are fully owned by a Diaspora or partially owned (at least 20% ownership) by Diaspora with a verifiable business partnership between a BiH resident business owner and a Diaspora member residing in a country other than BiH;
- Diaspora-linked MSMEs with a certified partnership to the satisfaction of the Guaranteed Party, based on proof of an equity relationship, trade relationship, contractual relationship, joint venture or other legal relationship between the Diaspora member and BiH resident.
Eligibility criteria and basic characteristics of the DFC Diaspora Guarantee Line:
Available amount: 15,000,000 USD
Program duration: until 30.09.2028.
The following are eligible for funding under the guarantee program:
- A very small enterprise is one that has at least two of the following three characteristics:
- 10 or fewer employees;
- annual income up to the equivalent of $ 100,000;
- and/or total assets up to the equivalent of $ 100,000.
- An SME is one that has at least two of the following three characteristics:
- 300 or fewer employees;
- annual income not exceeding the equivalent of $ 15,000,000;
- and / or total assets not exceeding the equivalent of $ 15,000,000.
Type of loan: Annuity and bullet loans
Maximum loan amount: USD 500.000.00 per client (including related parties)
Loan repayment period: Minimum 6 months
Collateral: The guaranteed line can provide 50% of the principal of the placement.
Purpose of financing: Investing in fixed or working capital for new investments, it is not possible to refinance the existing debt.
What does the DFC Diaspora Warranty Line mean for our clients?
- Easier and more favourable access to finance for small and medium enterprises related to the diaspora
- Reduced demand for security
This new partnership, which includes the United States International Development Finance Corporation will help ProCredit Bank provide better services to diaspora-related companies and thus strengthen economic development in BiH and better connect BiH companies with regional and global markets.
For more information on the Diaspora warranty line, contact your Customer Advisor or call us on 033 250 950.