Members of the Board of ProCredit Bank signed with the Development Bank of FBiH Agreement on the use of the Guarantee Fund within which the Federation Government provides support to entrepreneurs and small business owners who are affected by the pandemic Covide-19th
What is the FBiH Guarantee Fund?
The Guarantee Fund is an instrument of assistance from the Government of the Federation of BiH, and the Development Bank of the Federation of BiH will, on behalf and for the account of the Federation of BiH, issue guarantees of the Guarantee Fund to commercial banks. The new agreement with ProCredit Bank dd Sarajevo provides support for the financing of small and medium enterprises (SMEs) affected by the outbreak of the COVID-19 pandemic.
- Available amount: 20,000,000 KM
- Program duration: until 05.2021.
- Credit guarantee programs:
|For craftsmen and other independent economic activities||For micro, small and medium enterprises||For large enterprises||For the agriculture and food industry||For exporters (*30% of export revenue)|
- Qualifying beneficiaries must be based in the FBiH and have a negative business impact caused by COVID-19
- Negative impact:
- not defined for the program for large companies and exporters,
- and for other programs a decrease in revenue of at least 20% compared to the same period 2019 (example of calculation in the Standard)
Basic characteristics of the program:
- Type of loan: annuity loans and bullet loans
- Loan repayment period: long-term loans up to 60 months including grace period up to 18 months, short-term loans up to 12 months
- Collateral: The Fund provides coverage of 50% of the loan principal amount
- Commercial conditions: the contractual interest rate for the borrower is lower than the market interest rate.
What does the FBIH Guarantee Fund mean for our clients?
- Facilitated access to finance for small and medium enterprises,
- Sustainability of small and medium enterprises,
- Retaining existing but also creating new permanent and seasonal jobs,
- Modernization of production lines,
- Increasing production capacity.
Find out more information about the FBIH Guarantee Fund from your Client Advisor or call us at 033 250 950.