The €5 million loan agreement with Čačanska banka a.d. Čačak was signed at the at the Annual Meeting of the European Fund for Southeast Europe (EFSE) held in Tirana, Albania, on Tuesday.
The infusion of funds is intended to help business capitalise on NLB Razvojna banka Banja Luka’s new energy efficiency loan programme.
The bank is expected to use the proceeds of the loan to finance improvements in building envelopes, heating systems, heat distribution and lighting systems, in addition to renewable energy installations.
“Not only will it bring firms and private households in Bosnia and Herzegovina economic and environmental benefits, it also underlines the role the private sector can play in improving competitiveness and mitigating global climate change at the same time,” said Monika Beck, chairwoman of the board of directors of the Green Growth Fund.
The loan is complemented by a technical assistance package invested by the fund’s technical assistance arm, providing capacity building assistance on operational aspects of energy efficiency finance product implementation.
“The experience that Čačanska banka gained in financing energy efficiency projects through the Hit Energy credit line with KfW is the basis for our partnership with GGF,” said Aleksandar Ćalovid, Vice President of the Executive Board of Čačanska banka. “The bank and the fund will jointly provide financial support to business and retail clients for energy efficiency projects.”
The energy sector is considered to be one of Bosnia’s key bottlenecks to economic growth, leaving significant room for clean energy investment.
“Blended with our own financial resources that we are well-endowed with, the Green Growth Fund loan increases our potential to support the huge investment needs in energy efficiency,” said Radovan Bajid, director at NLB Razvojna banka Banja Luka.
The Green for Growth Fund was initiated by the European Investment Bank and German development bank KfW Entwicklungsbank to enhance energy efficiency and foster renewable energies in southeast Europe.
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