RS SME Loan Guarantee Programme

Location:

Bosnia and Herzegovina

Project number:

52275

Business sector:

Financial institutions

Notice type:

State

Environmental category:

FI

Approval date:

13 May 2021

Status:

Concept Reviewed

PSD disclosed:

09 Oct 2020

Project Description

Provision of a sovereign loan of up to EUR 9.5 million in the form of a Standby Credit Line (SBCL) in favour of Bosnia and Herzegovina to be on-lent to Republika Srpska. As an SBCL, EBRD finance is designed to provide funds to Republika Srpska under certain pre-agreed conditions in order to support the newly established COVID-19 Guarantee Programme for SMEs which will be administered by the Republika Srpska Guarantee Fund ("RSGF"). The new facility will complement the funds that will provided by the Government of Republika Srpska in the amount of EUR 15.5 million. 

Project Objectives

The project will enable Republika Srpska to have adequate funding arrangement in place to fully fund the COVID-19 Guarantee Programme increasing the capacity of one the most important Covid-19 response tools that will help SMEs gain access to finance swiftly.  The project additionally aims to strengthen the Guarantee Programmes' operational capabilities in line with international standards through a targeted TC assignment. 

 

 

Transition Impact

ETI score: 60

The expected transition impact of the project is derived from its contribution to the Resilient and Well-governed transition qualities. The project will support the Resilient quality by strengthening the country's capacity to maintain SME lending during the Covid-19 period and help the newly established Guarantee Programme to become fully functional. The Well-governed quality is supported by the technical assistance programme focused on operational capabilities of the Guarantee Programme to ensure proper use of the crisis-time resources and align the governance with best international practices

 

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

The borrower is Bosnia and Herzegovina. The loan proceeds will be on-lent to Republika Srpska.

EBRD Finance Summary

EUR 9,500,000.00

A sovereign loan of up to EUR 9.5 million, to be on-lent to Republika Srpska.

Total Project Cost

EUR 25,000,000.00

The total estimated project cost is up to EUR 25.0 million.

Additionality

Additionality is generated from financing structure and risk mitigation. The project will provide a back-up financing facility that has a unique structure that is currently not available in the market. The Bank's involvement through the project will also enhance the Guarantee Programmes' governance  practices up to international standards.

Environmental and Social Summary

Categorised FI (ESP 2019). RSGF will be required to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. ESDD will be undertaken in house and will include a review of the E&S questionnaire to be provided by the guarantee funds. Any corrective measures required to bring the Project in line with PRs will be developed and included in the ESMPs prior to Final Review. Sub-borrowers financed through RSGF loans will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation and Grant Financing

The project includes a Technical Cooperation (TC) programme that provides support to the Ministry of Finance of Republika Srpska in establishing and operating a credit guarantee programme that will allow easier access to credit by SMEs. The TC aims to make the programme more effective and efficient, strengthen governance and oversight of the programme and allow international financial institutions, including EBRD, to work with the Ministry of Finance to provide more resources for the economic recovery.

Company Contact Information

Bojana Vasiljevic Poljasevic
B.Vasiljevic@mf.vladars.net
+387 51 339 778
+387 51 339 670
https://www.vladars.net/sr-SP-Cyrl/Vlada/Ministarstva/mf/Pages/default.aspx
Trg Republike Srpske 1 78 000 Banjaluka Bosnia and Herzegovina

PSD last updated

09 Oct 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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