EU approves € 39 million financial crisis response package for Bosnia and Herzegovina

BiH

Today the European Commission adopted a programme to help Bosnia and Herzegovina to mitigate the impacts of the financial and economic crisis.

The € 39 grant finance will support the development of small and medium sized enterprises and provide significant investment in infrastructure in the transport, environment, and energy sectors. Funding will be granted also to the Deposit Insurance Agency to enable it to prevent deposit outflows due to the financial crisis.

The grant contribution from the European Commission will trigger substantial loan financing from the International Financial Institutions such as the European Investment Bank, the European Bank for Reconstruction and Development and the Kreditanstalt für Wiederaufbau.

The € 39 million has been allocated under the Instrument for Pre-accession Assistance envelope for Bosnia and Herzegovina. A second programme for Bosnia and Herzegovina to ensure continuation of important institution-building efforts in the country will be adopted by the European Commission in autumn 2009.