FBiH Government’s Guarantee Fund has been fully activated

FBiH Government’s Guarantee Fund has been fully activated

SARAJEVO, December 2 (FENA) – The Guarantee Fund established by the Government of the Federation of BiH with the Development Bank of the FBiH, as a measure to encourage economic recovery, has been put into full function.

Eight loan requests to businesses within the credit-guarantee programs have been approved, and the government also secured guarantees for loans in the amount of 13,295,000 KM.

Loans placed under credit guarantee programs are aimed at preserving jobs, maintaining production and exports, providing liquidity and ensuring stable operations.

Acting Chairman of the Management Board of the Development Bank of the Federation of BiH Semir Fejzić points out that eight guarantee programs have been approved to economic entities yesterday, and that after signing agreements on business cooperation with commercial banks, the Guarantee Fund of the Government of the Federation of BiH has been activated in full capacity.

“We supported eight loan applications to business entities and provided guarantees for their loans under credit guarantee programs in the total amount of 6,647,500 KM. The guarantee provides 50% of the total amount of the approved loan, and the first eight loans are approved from the credit-guarantee program for exporters,” said Fejzić.

The Fund’s guarantees are intended for the strengthening of the credit potential of entrepreneurs to secure sources of financing in order to mitigate the negative effects caused by the pandemic on the FBiH economy and create conditions for sustainable economic growth and employment.

The guarantees can only be approved for credit-guarantee programs intended for crafts and other independent economic activities, also for micro, small and medium enterprises, agriculture and food industry, large companies and exporters.

The Government of the FBiH has provided a total of 100 million KM for this fund, which serves as a source for guarantees that the Development Bank of the Federation of BiH, on behalf of the Government of the Federation of BiH will issue to entrepreneurs, i.e., to borrowers of loans granted by commercial banks. The guarantee potential is five times higher and amounts to 500 million KM.