MICROCAPITAL BRIEF: EBRD Loans $2.3m to UniCredit Bank Banja Luka of Bosnia and Herzegovina as Part of $23m Advisory, Financing Package for Women-led SMEs in the Balkans

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, has partnered with UniCredit Bank Banja Luka (UB), the unit of Italy’s UniCredit Group that operates in Bosnia and Herzegovina, to launch EBRD’s “Western Balkans Women in Business” program with a EUR 2 million (USD 2.3 million) credit provided to UB. The loan agreement, which  is the first between EBRD and UB, represents the first disbursement of up to USD 23m earmarked by EBRD for “on-lending to women-led SMEs [small and medium-sized enterprises] in the Western Balkans” under its Women in Business program.

The program provides support to women-led SMEs such as financing, technical assistance, risk mitigation strategies and business advisory services. The head of EBRD’s Bosnia and Herzegovina Office, Ian Brown, said: “While we know that women play an important role in business, we believe that expanding their role is an important part of fulfilling the region’s economic potential.”

As of 2013, UniCredit Bank Banja Luka reported assets of BAM 943 million (USD 673 million), BAM 671 million (USD 479 million) in customer receivables, and BAM 533 million (USD 375 million) in deposits from customers. UniCredit Group operates in 22 European countries and reported total assets of EUR 846 billion (USD 1.17 trillion) as of the same year. With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.

By Mathew Cerf, Research Associate

About UniCredit Bank Banja Luka

UniCredit Bank Banja Luka, which was established in 1911 under the name Banjalucka Banka, is a subsidiary of UniCredit Bank Austria AG, a member of UniCredit Group.  As of 2013, UniCredit Bank Banja Luka reported assets of BAM 943 million (USD 673 million), BAM 671 million (USD 479 million) in customer receivables, and BAM 533 million (USD 375 million) in deposits.

About UniCredit Group

Based in Italy, the UniCredit Group has 9,500 branches in 22 countries in Europe and reported total assets of EUR 846 billion (USD 1.17 trillion) as of 2013.

About the European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of the year.

Sources and additional resources:

[1] European Bank for Reconstruction and Development Press Release: “EBRD launches Western Balkans Women in Business programme

[2] UniCredit Bank Banja Luka: “About Us

[3] UniCredit Bank Banja Luka: “Financial statements

[4] MicroCapital Universe Profile: “UniCredit Bank Serbia

[5] MicroCapital Universe Profile: “European Bank for Reconstruction and Development (EBRD)

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