The 
UK-based European Bank for Reconstruction and Development (EBRD) recently announced it is lending EUR 2 million (USD 2.37 million) to ProCredit Bank Bosnia and Herzegovina (PCB BiH) to on-lend for residential “investments in insulation, windows, heat pumps, solar panels and other improvements” that reduce energy usage. PCB BiH is a member of Germany’s ProCredit Holding, whose members provide banking services to individuals as well as small and medium-sized enterprises (SMEs) who have previously had limited access to formal financial services.
In support of the transaction, the EU has agreed to offer end-borrowers cash incentives for completing their home improvements. These grants to homeowners will range up to 20 percent of the amount of each retail loan.
Board President of PCB BiH Amir Salkanovi stated, “We have… helped preserve the environment by using hybrid vehicles and other measures within our organisation. We are therefore proud to sign a new credit line for energy efficiency improvement with the EBRD to ensure that many households in Bosnia and Herzegovina can achieve higher energy efficiency standards.”
EBRD announced the loan as part of the EU’s Green Agenda for the Western Balkans and is disbursing the funds from the EBRD Green Economy Financing Facility (GEFF). Founded in 2019, GEFF delivers funds to 145 financial institutions in 27 countries to on-lend to SMEs as well as individuals for “green” investments in Eastern Europe, West Asia and the Middle East. GEFF is supported by the Austrian Federal Ministry of Finance; the EU; and the Western Balkans Investment Framework (WBIF), which is funded by “the EU, financial institutions, bilateral donors and the governments of the Western Balkans.” As of 2021, GEFF has invested EUR 4.6 billion (USD 5.6 billion) in projects to mitigate climate change as part of EBRD’s commitment to becoming a “majority green bank” by 2025. These investments from GEFF have funded loans to approximately 190,000 customers, reducing annual emissions of carbon dioxide by 8.6 million tons.
As of 2020, PCB BiH reported total assets of BAM 608 million (USD 368 million), a gross loan portfolio of BAM 467 million (USD 283 million) and deposits of BAM 331 million (USD 200 million). ProCredit Holding banks operate in Albania, Bosnia and Herzegovina, Bulgaria, Ecuador, Georgia, Germany, Kosovo, Moldova, North Macedonia, Romania, Serbia and Ukraine. As of December 2020, the group reported assets of EUR 7.76 billion (USD 9.14 billion), a gross loan portfolio of EUR 5.25 billion (USD 6.18 billion) and customer deposits of EUR 4.90 billion (USD 5.79 billion).
Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of microenterprise and SMEs. With a focus on “the promotion of private and entrepreneurial initiative,” the bank disbursed approximately EUR 11 billion (USD 13.3 billion) to 411 projects during 2020. EBRD’s shareholders comprise 69 countries plus the EU.
By Harriet Ritchie, Research Associate
Sources and Additional Resources
EBRD press release
https://www.ebrd.com/news/2021/ebrd-eu-and-austria-finance-energy-savings-in-bosnia-and-herzegovina-.html
PCB BiH homepage
https://www.procreditbank.ba/
PCB BiH 2020 annual report
https://www.procreditbank.ba/wp-content/uploads/2021/06/ProCredit-Bank-d.d.-ENG-FINAL-.pdf
ProCredit Holding homepage
https://www.procredit-holding.com/
ProCredit Holding annual report
https://www.procredit-holding.com/wp-content/uploads/2021/03/2020_EN_PCH_AR_L.pdf
GEFF homepage
https://ebrdgeff.com/
Austrian Federal Ministry of Finance homepage
https://www.bmf.gv.at/
WBIF homepage
https://www.wbif.eu/
EU Green Agenda for the Western Balkans webpage
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52020SC0223
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