(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 16. The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are strengthening access to finance for small and medium-sized enterprises (SMEs) and households in Bosnia and Herzegovina through a new partnership with Raiffeisen Bank, Trend reports.

Under the initiative, the EBRD is providing Raiffeisen with a 25 million euro unfunded risk-sharing guarantee, unlocking 50 million euros in new SME lending through its Portfolio Risk Sharing (PRS) product.

The guarantee covers up to 50% of credit risk on new SME loans, targeting underserved businesses, including those led by women and young entrepreneurs, as well as SMEs in tourism, agriculture, and rural areas. The scheme is backed by technical assistance and a first-loss counter-guarantee from the EU's European Fund for Sustainable Development Plus (EFSD+) Growth for All programme, marking the first PRS facility supported by EFSD+ in the Western Balkans.

In addition, a 3 million euro EBRD loan will support households investing in energy-saving home upgrades, with eligible borrowers able to receive up to 20% cashback from the EU upon project completion. Technical assistance funded by Japan and the EU will help ensure smooth implementation. The financing is part of the EBRD's Green Economy Financing Facility (GEFF), which has already helped over 22,000 households in the Western Balkans improve energy efficiency.

Stela Melnic, EBRD Head for Bosnia and Herzegovina, highlighted the partnership's significance:“By sharing risk and combining innovative financial instruments with targeted technical assistance, we are enabling more SMEs and households to invest in their future, whether through business growth or energy-efficient home upgrades. This is the kind of inclusive and green financing the EBRD champions across the Western Balkans.”

Luigi Soreca, Head of the EU Delegation and Special Representative in Bosnia and Herzegovina, added:“These agreements demonstrate the EU's commitment to providing new opportunities for SMEs and supporting households in making their homes more energy-efficient. These initiatives drive green and digital transformation and strengthen the resilience of the private sector, laying the foundation for a more sustainable and prosperous future.”

Raiffeisen Bank CEO Rainer Schnabl said the cooperation enables the bank to expand lending to SMEs, particularly those led by young people and women, and to support households investing in energy efficiency.

Since 1996, the EBRD has invested over 3.4 billion euros in 252 projects in Bosnia and Herzegovina, focusing on green economy development, private sector competitiveness, and regional integration.

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