Agreement on business cooperation signed between the Development Bank of the Federation of BiH and Privredna banka Sarajevo d.d. Sarajevo

Representatives of Privredna banka d.d. Sarajevo and the Development Bank of the Federation of BiH signed a Business Cooperation Agreement enabling the participation of Privredna banka d.d. in the loan and guarantee programs of the Guarantee Fund of the Federation of BiH. By signing this Agreement, the clients of Privredna banka d.d. were enabled to lend favorably with the guarantee of the Guarantee Fund of the Federation of BiH as an instrument of securing part of the loan (50% of the loan principal) with the aim of easier overcoming the negative consequences caused by the COVID-19 pandemic.

"The Development Bank of the Federation of BiH has issued the second additional public invitation to commercial banks to participate in the loan guarantee programs of the Guarantee Fund of the Federation of BiH, with the prior consent of the Federal Ministry of Finance, with the aim of providing access to this instrument of assistance of the Government of the Federation of BiH to all commercial banks that have a license issued by the local Regulator. Namely, since the establishment of the Guarantee Fund until today, RB FBiH has issued a total of 152 guarantees in the amount of approximately 80 million KM through 11 (eleven) commercial banks with which it has concluded business cooperation agreements as of November 30, 2021, which means that commercial banks have placed approximately 160 million KM of loans to the economy with favorable loan conditions and with the guarantee fund. In addition to the aforementioned fact that proves the success of this instrument of assistance of the Government of the Federation of BiH in the time of the COVID-19 virus pandemic, it is important to emphasize the fact that all clients who have approved loans with the guarantee of the Guarantee Fund, automatically exercise the right to subsidize interest through the competent ministries, which makes this instrument of assistance additionally attractive. With today's signing of the contract with Privredna banka d.d., all these benefits will be provided to the clients of this domestic bank", said Mensud Bašić, Acting President of the Management Board of the Development Bank of the Federation of BiH.

Representative of Privredna banka Sarajevo d.d. Sarajevo further emphasized that the Bank has been with clients throughout the period of the global crisis caused by the pandemic, and by applying various measures, it has tried to facilitate their business and overcome the liquidity problem as well as other negative effects caused by the covid-19 virus.

"By signing the contract with the Development Bank of the Federation of BiH on business cooperation, the Bank's participation in the loan and guarantee programs of the Guarantee Fund of the Federation of BiH, we will be able to provide additional, targeted support to clients, through more favorable loans and with the guarantee of the Guarantee Fund of the Federation of BiH. In this way, we contribute to the maintenance and strengthening of the economy of BiH, which is one of the strategic commitments of the Bank since its establishment until today", said Hamid Pršeš, President of the Management Board of Privredna banka Sarajevo d.d. Sarajevo.