INTESA SANPAOLO BANKA BIH SIGNS AGREEMENT WITH DEVELOPMENT BANK OF FBIH ON USING GUARANTEE FUND
The Guarantee Fund represents the aid instrument of the Government of FBiH, and the Development Bank of the Federation of BiH will, on behalf and for the account of the Federation of BiH, issue guarantees of the Guarantee Fund to commercial banks, as security instrument for 50% of the loan principal that a commercial bank grants to its client
SARAJEVO, 7.10.2020 – Representatives of Intesa Sanpaolo Banka of BiH signed an Agreement with the Development Bank of FBiH on using funds of the Guarantee Fund by which the Government of Federation of BiH provides support to businessmen and craftsmen affected by the COVID-19 pandemic.
By signing this Agreement, the conditions are defined by which favourable conditions of crediting with guarantee of the FBiH Government are provided for the businessmen, that is, legal entities, who independently perform the activity of production and sale of products and services at the market. Guarantees of the Fund are intended for loan beneficiaries with seat, that is, place of residence, in Federation of Bosnia and Herzegovina.
“The Coronavirus pandemic has significantly slowed down the development of the economy and seriously jeopardized the performance of regular business activities of our clients. It is of great importance that the FBiH Government participates in the support and loans of Intesa Sanpaolo Bank BiH to businessmen, using the Guarantee Fund and Development Bank of FBiH. The Fund will encourage the banking sector to credit the economy more actively, ensuring the necessary liquidity in order to overcome the market uncertainty. The program covers a wide range of clients from different industries. Through the Guarantee Fund we have the opportunity to facilitate clients’ operations with more favourable terms in terms of interest and collateral. We are especially glad that the program includes also the companies whose operations are export-oriented”, said Alek Bakalović, member of Intesa Sanpaolo Banka BiH, at today’s signing of the agreement.
“The Guarantee Fund of the Federation of BiH represents a long-term support to economic activities through two phases. In the first phase, the guarantees of the Fund are supposed to strengthen the credit potential of businessmen to secure sources of financing, in order to mitigate the negative effects of the COVID-19 pandemic to the economy of Federation of BiH and to create conditions for sustainable growth of the economy and employment. In the second phase, the guarantees of the Fund will be directed to support the launch of new business activities, growth and development of existing ones, increasing competitiveness, innovation and employment”, said Acting President of the FBiH Development Bank Semir Fejzić, PhD.
The initial funds of the Guarantee Fund amount to 80 million KM, and in the next period, ie at the beginning of October 2020, it will increase by additional 20 million KM. The guarantee potential is five times higher, which further confirms the importance and long-term nature of this instrument of assistance to businessmen and craftsmen by the Government of the Federation of BiH, which is implemented through the Development Bank of the Federation of BiH.