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EBRD becomes shareholder in UPI Banka
19.9 per cent stake supports banking sector in Bosnia and Herzegovina
More support for small and medium-sized enterprises (SMEs), increased lending activities, more branches across the country, and improved IT infrastructure -- these are some of the benefits of a €2.3 million investment by the European Bank for Reconstruction and Development in UPI Banka, a medium-sized bank in Bosnia and Herzegovina.
The EBRD's 19.9 per cent stake, together with an additional €1.1 million capital increase by two existing shareholders of the bank - Sarajevska Pivara and Klas -- will enable UPI Banka to implement a new business plan and strategy to expand in Bosnia and Herzegovina.
Jean-Marc Peterschmitt, Director for the Western Balkans at the EBRD, said the Bank's stake is an indication of its confidence in UPI Banka and its management. He said the EBRD's investment will help foster competition and, by doing so, support the banking sector in Bosnia and Herzegovina.
The Bank's stake builds on a €2.5 million loan made in 1999 to UPI Banka under an SME Framework Facility for Bosnia and Herzegovina, which is co-financed by the Italian Government. The loan enabled UPI Banka to provide medium to long-term financing to SMEs in the country.
Mirsad Letic, General Director of UPI Banka, said UPI Banka has had good working relations with the EBRD since 1999 when the SME credit line was granted. He said the UPI banka hopes to build on this successful relationship and that the capital increase will enable UPI Banka to achieve its targets to expand and increase lending activities.
UPI Banka was established in 1972 as a part of an agri-business consortium and re-established in 1991 as an independent commercial bank, with a focus on providing services to the local private SME sector, including in the regions outside Sarajevo.
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