Small and medium-sized enterprises in Bosnia and Herzegovina are set to receive targeted financial backing to accelerate their digital and ecological transitions following a new funding agreement.
The European Bank for Reconstruction and Development is issuing a €10 million senior secured loan to UniCredit Bank Mostar, a major commercial lender in the country. The capital injection is delivered through the Go Digital in the Western Balkans Programme, which aims to improve private sector competitiveness and help regional firms align with European Union standards.
UniCredit Bank Mostar will on-lend the funds to eligible local firms to pay for advanced manufacturing machinery, digital upgrades and sustainable infrastructure. Under the guidelines of the project, a minimum of 60 per cent of the total loan proceeds must fund projects that comply with the green economy transition approach of the lender, meaning the investments must deliver verified energy savings or emissions cuts.
The initiative combines commercial funding with technical advisory services and investment incentives financed by the European Union via the Western Balkans Investment Framework. This assistance is designed to help local management teams create viable business plans and upgrade corporate technical skills. Furthermore, the framework prioritises female-led businesses to create fairer regional access to technology and capital.
Local smaller firms remain vital drivers of economic growth and domestic employment, yet they frequently encounter structural roadblocks when attempting to modernise technology and meet strict trading rules. This targeted financial package intends to narrow that structural gap. Since opening its operations in the country, the international development institution has deployed nearly €3.5 billion across 266 localised projects to improve infrastructure and private-sector economic resilience.
Stela Melnic, EBRD Head of Bosnia and Herzegovina, said: “Digitalisation and green innovation are increasingly essential for SMEs to remain competitive, resilient and ready for closer integration with European markets. Through our partnership with UniCredit Bank Mostar, and with the strong support of the EU, we are helping businesses across Bosnia and Herzegovina invest in modern technologies that improve productivity, reduce energy consumption and support sustainable growth.”
Amina Mahmutović, President of the Management Board of UniCredit Bank Mostar, said: “Through the continuation of our successful cooperation with the EBRD, we reaffirm our long-term commitment to the digital transformation of the domestic economy and to strengthening our business community. Investments in digital solutions enable improvements in productivity and cost optimisation, and further enhance competitiveness in both domestic and international markets. We believe that companies will recognise this opportunity and – through the adoption of innovative technologies, the development of skills and the enhancement of services – continue to grow on sustainable foundations. We remain strongly committed to supporting SMEs in their digitalisation process, as they represent a key driving force of economic development in Bosnia and Herzegovina.”
