Financing Line provided by the Government of Malaysia

About Financing Line

The Financing Line/deposit is provided by The Government of Malaysia and disbursed to final beneficiaries through Bosna Bank International d.d. Sarajevo (BBI).

The Financing Line in the amount of around EUR 1 million. The beneficiaries of the financing line would be SMEs that are engaged in agriculture, tourism or other production activities, aiming to increase their production and capacities thus contributing to sustainable growth of  economy, employment and production, which would benefit by having improved access to finance.

Funds from this Fund will provide to businesses from the whole BiH financings in the amount of 10 to 300 thousand KM with a repayment period of 12 to 120 months and a grace period of six months.

Conditions of Financing

Conditions of financing individual beneficiaries

• Financing of 10.000,00 KM up to 300.000,00 KM;
• Repayment period from 12 up to 120 months, including grace period of up to 6 months for long term financing,
• Profit margin rate cup limit up to maximum 4,95% p.a. for short term financing (up to one year),
• Profit margin rate cup limit up to maximum 5,95% p.a. for long term financing (from 12 to 120 months),
• One-shot fee of 0,1% to 1,5% for application processing,
• Collateral in accordance to credit policies of the Bank.

Committee for Finance and Investment can approve the repayment period up to 180 months in specific cases when it is justified through expected user’s profitability and cash flow.

One SME beneficiary can have only one working capital financing and one investment loan at the same time
 

Applicants Eligibility

The Bank financings should be extended to support eligible and credit worthy SMEs. To be eligible, enterprises should:

• Employ fewer than 250 persons
• Has an annual turnover not exceeding BAM equivalent of EUR 50 million, and/or its balance sheet with assets of less than BAM equivalent of EUR 43 million 
• Be required to demonstrate prior operating experience in the activity to be financed
• Be duly licensed with a number assigned by tax authorities 
• Be engaged in agricultural-processing, food production, tourism, manufacturing or related value-added services 
• Be privately owned, with more than 50 percent of private equity. The owners and managers of the enterprise must be honest, experienced and qualified to operate the respective business and willing to timely and fully service enterprise’s, as well as their personal liabilities
• Have organization, management, staff and financial and other sources required for the efficient carrying out of its operations, including the carrying out of the sub-project
• Be credit worthy, has a sound financial condition and minimum 2 years of operation.

Eligibility Criteria

When submitted by SMEs, to be considered eligible, projects should:

• prove to be for investments in agriculture, food processing, tourism, purchase of machinery or raw material, construction, wood based or other eligible production and related services
• prove to be technically feasible and economically, financially and commercially viable
• prove to be for increase of production or business capacities and new employment,
• be environmentally friendly and in compliance with all applicable laws and regulations