Financing from the IDB’s Trust Fund

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Project area
Republika Srpska; financing projects in field of agriculture with a goal to ensure sustainable return of refugees and displaced persons.

Beneficiaries of financings
Individuals and corporate entities who are engaged in agricultural production on behalf of natural persons who are members of their cooperatives.

Financing is directed for financing projects in field of agriculture of strong social dimension and would ensure more employment opportunities, sustainable return of refugees and displaced persons to their original homes and overall improvement of the standard of living of that population.

Financing can be used for the following purposes:

• Construction and reconstruction of stables and buildings for cattle breeding, poultry, production of meat, milk and eggs;
• Construction of other buildings related to agricultural activities, equipping those facilities with necessary devices and machines (cold storage plants, generating sets, mini power stations, etc.);
• Acquisition of devices and equipment required for cattle breeding (cages, nests, feeders and watering places, cleaning devices and maintenance of optimal temperature…);
• Purchase of basic herd/flock for the purpose of production ;
• Purchase of agricultural machines and equipment;
• Purchase of agricultural tools;
• Purchase and installation of conservatories and polythene greenhouses;
• Purchase of seeds and planting and cultivation of vegetables and fruits;
• Financing of servicing activities in field of cattle breeding and vegetable growing (e.g. herb pharmacy, etc.);
• Financing growing of fish;
• Acquisition of other requirements related to agricultural activities.

Amount of financing To KM 10,000.00)

Repayment term
from 12 to 48 months, may include 3-8 months installment grace period

Profit Rate
4.9% p.a. in case of repayment up to 12 months; 5.9% p.a. in case of repayment over 12-48 months

Repayment source
Income from agricultural activities and from other available income sources.

Security instruments
It is possible to take one or more below given security instruments, as assessed by the Bank:

• One or more guarantors acceptable to the Bank;
• Contract on buying out of agricultural products assigned to BBI
• Promissory notes of a firm that is buying out products with designation “Without protest’
• Pledge over movable property
• Insurance policy in favor of the Bank
• Client’s promissory notes with designation “Without protest”
• Firm’s guarantee, collateral, which is acceptable to the Bank according to the Policy on financing corporate clients.

Financing fee
A single payment of 0.5%, but minimum KM 35.00 or 1% if a firm appears as mediator and guarantees repayment of financing

Financing modalities

1. Direct financing of end beneficiaries
2. Financing of end beneficiaries (natural entities) through corporate entities

Financings from the IFAD line

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Loans for individual agricultural producers

• Loans from KM 5,000.00 to KM 20,000.00
• Repayment period up to 60 months, including 18 months grace period
• Profit margin rate from 7.0% to 11.0% p.a.
• Single payment of loan application administration fee from 1.0% to 2.0%
• Collateral: guarantors, promissory notes, insurance policy, pledge right (over real estate or movable property) and deposit

Project area

1. Municipalities of Una-Sana Canton (Canton No.1): Velika Kladuša, Bužim, Cazin, Bosanska Krupa, Bihać, Sanski Most, Bosanski Petrovac and Ključ;
2. Municipalities of Livanjski Canton (Canton No.10): Drvar, Glamoč, Bosansko Grahovo, Livno and Tomislavgrad;
3. Municipalities from Western-Herzegovina Canton (Canton No.8): Posušje