The EBRD is strengthening its cooperation with Addiko Bank a.d. Banja Luka in Bosnia and Herzegovina by extending a EUR 5 million loan for on-lending to small and medium enterprises (SMEs). This is the third loan the EBRD extends to Addiko Bank Banja Luka, in support of the partner bank’s SME lending operations in the country. The EBRD’s investment will support the growth and development of local small businesses by increasing their access to finance through ABB.  

SMEs are the main source of employment in the private sector and a major contributor to the economy in Bosnia and Herzegovina. However, sources of medium-term financing for SMEs remain limited, impeding the growth of the private sector. To address this challenge, ABB will focus on expanding its SME portfolio, focusing specifically on underserved enterprises in regions outside of Banja Luka.  

As part of the cooperation, the EBRD and Addiko Group will rollout a Business Academy for SME beneficiaries across Bosnia and Herzegovina, providing know-how across areas like succession management, financial reporting, digital transformation, and ESG considerations with a strong participation of female entrepreneurs and managers expected.  

Manuela Naessl, EBRD Head of Bosnia and Herzegovina, said: “The continuation of successful cooperation with ABB is very important for the strategic development of the SME sector in Bosnia and Herzegovina. We are especially pleased that SMEs will not only benefit from improved access to finance but also a new  learning platform that can help them acquire new management skills for a more competitive global market” 

To date, the EBRD has invested more than €3 billion through 216 projects in Bosnia and Herzegovina