The European Bank for Reconstruction and Development is extending a €10 million senior secured loan to UniCredit Bank Mostar, one of the leading commercial banks in Bosnia and Herzegovina, to accelerate the digital and green transformation of the country’s small and medium-sized enterprises.
The financing is provided under the Go Digital in the Western Balkans Programme, a regional initiative designed to boost SME competitiveness and resilience by supporting investment in automation, digitalisation and environmentally sustainable technologies, while helping firms move closer to meeting European Union standards.
Under the arrangement, the loan proceeds will be channelled to eligible SMEs across Bosnia and Herzegovina to fund digital upgrades, cutting-edge production equipment and energy-efficient technologies. The EBRD expects that at least 60 per cent of these investments will qualify under its Green Economy Transition framework, contributing directly to reduced energy consumption and lower greenhouse-gas emissions.
For many firms that continue to face structural and financial barriers to adopting modern solutions, this combined financial and technical support aims to narrow the technology and sustainability gap that currently limits their growth potential.In addition to long-term financing, the programme incorporates a broad package of technical assistance and investment incentives funded by the European Union through the Western Balkans Investment Framework.
This support will help SMEs develop strong, bankable investment plans, strengthen their digital and green capabilities and ensure effective implementation and monitoring of projects. A particular emphasis is placed on expanding access to finance for women-led SMEs, recognising their under-representation in the market and supporting broader gender inclusion in the business ecosystem.
Bosnia and Herzegovina’s SME sector remains a cornerstone of national employment and economic activity, yet a substantial share of firms continue to face challenges in upgrading equipment, digital tools and operational standards. By integrating advisory support with targeted investment funding, the EBRD seeks to strengthen the private sector’s ability to compete more effectively both regionally and internationally.
The aim is not only to upgrade individual companies but also to contribute to the development of a more productive, technologically capable and environmentally sustainable SME landscape.According to Stela Melnic, the EBRD’s Head of Bosnia and Herzegovina, digitalisation and green innovation are increasingly vital for firms aiming to remain competitive and resilient in a rapidly shifting economic environment.
She noted that the partnership between the EBRD, the European Union and UniCredit Bank Mostar enables SMEs to access the tools and financing they need to improve productivity, cut energy use and pursue sustainable growth pathways. This combination of financing and know-how is intended to prepare businesses for future integration with wider European markets.
Amina Mahmutović, President of the Management Board of UniCredit Bank Mostar, emphasised that the continued collaboration with the EBRD reinforces the bank’s long-term commitment to advancing the digital transformation of the domestic economy. She highlighted that investments in digital solutions improve productivity, streamline operational costs and strengthen competitiveness both domestically and internationally.
She expressed confidence that businesses will seize the opportunity to adopt new technologies, enhance digital skills and build services on more sustainable foundations. Supporting SMEs in this transition, she added, remains a central priority for the bank, given their role as a driving force of Bosnia and Herzegovina’s economic development.
UniCredit Bank Mostar operates as a universal commercial bank with a nationwide presence and serves retail, corporate and SME clients across the country. As part of the wider UniCredit Group, it has established a long-standing partnership with the European Bank for Reconstruction and Development, collaborating on initiatives to strengthen the financial sector and enhance access to credit.
The Go Digital in the Western Balkans Programme has become one of the EBRD’s flagship regional initiatives, aligning closely with the EU’s Digital Agenda for the Western Balkans. Through its focus on SME competitiveness, digital transformation and green investment, the programme is helping businesses adapt to changing market demands while contributing to broader regional development goals.
Since the start of its operations in Bosnia and Herzegovina, the European Bank for Reconstruction and Development has invested nearly €3.5 billion across 266 projects. These investments span sustainable infrastructure, private-sector development and broader economic resilience, underscoring the institution’s long-term commitment to supporting the country’s growth and integration into the European economic landscape.
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