EBRD, EU And Raiffeisen Bank Partner To Boost Access To Finance For SMEs And Households In Bosnia And Herzegovina

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU), in collaboration with Raiffeisen Bank Bosnia and Herzegovina, have announced a new initiative to strengthen access to finance for small and medium-sized enterprises (SMEs) and households across the country. Under this partnership, the EBRD is providing Raiffeisen Bank with a €25 million unfunded risk-sharing guarantee, which will enable €50 million in new SME lending through the EBRD’s Portfolio Risk Sharing (PRS) product.

The guarantee will cover up to 50 percent of the credit risk on new SME loans, helping Raiffeisen Bank expand its reach and lend more effectively to underserved businesses. The initiative is supported by technical assistance and a first-loss counter-guarantee from the EU’s European Fund for Sustainable Development Plus (EFSD+) Growth for All programme. It aims to benefit SMEs operating in key sectors such as tourism and agriculture, as well as those led by women and young entrepreneurs, particularly in rural areas. Notably, this marks the first PRS facility supported by EFSD+ in the Western Balkans, with a broader regional rollout planned.

By sharing credit risk, the EBRD and the EU are helping Raiffeisen Bank strengthen its financial resilience while boosting lending to SMEs using its own capital. The PRS mechanism represents an innovative addition to the EBRD’s financial tools, designed to mitigate risk for partner institutions and bridge financing gaps for micro, small, and medium-sized enterprises. In addition to the SME financing programme, the EBRD is extending a €3 million loan that will be on-lent to households for energy-efficient home improvements. Borrowers completing eligible projects will be able to receive up to 20 percent cashback from the EU.

This effort will be supported by technical assistance funded by Japan and the EU to ensure effective project implementation. The initiative forms part of the EBRD’s Green Economy Financing Facility (GEFF) for the Western Balkans, which has already helped more than 22,000 households improve their energy efficiency. The programme also supports housing associations and construction companies in developing high-performance, sustainable residential buildings.

Commenting on the partnership, Stela Melnic, EBRD Head of Bosnia and Herzegovina, said that the collaboration represents an important milestone in expanding financial access for underserved businesses and households. She emphasized that by combining risk-sharing mechanisms with technical support, the initiative will empower SMEs and individuals to invest in their growth and sustainability.

Luigi Soreca, Head of the Delegation of the European Union to Bosnia and Herzegovina and EU Special Representative, highlighted that the agreements reflect the EU’s strong commitment to supporting SMEs and improving living standards across the country. He noted that by improving access to finance and promoting energy efficiency, the partnership contributes to the EU Growth Plan for the Western Balkans and supports the region’s green and digital transformation.

Rainer Schnabl, CEO of Raiffeisen Bank Bosnia and Herzegovina, expressed pride in being the first bank in the country to join the EBRD’s portfolio risk-sharing programme. He stated that the cooperation will help Raiffeisen expand its lending to SMEs, particularly those led by women and young entrepreneurs, while promoting energy-efficient investments in households. He added that as Raiffeisen marks 25 years of service in Bosnia and Herzegovina, this initiative reflects its ongoing commitment to fostering entrepreneurship, competitiveness, and sustainable growth.

Since beginning operations in Bosnia and Herzegovina in 1996, the EBRD has invested more than €3.4 billion across 252 projects. The bank continues to focus on promoting a green economy, supporting private sector competitiveness, and strengthening regional integration.