FBIH GOVERNMENT: 5.2 MILLION BAM TO LARGE COMPANIES AND EXPORTERS FOR INTEREST REGRESSION

SARAJEVO, MARCH 30 (ONASA) – At the proposal of the Federal Ministry of Energy, Mining and Industry, the Government of the Federation of Bosnia and Herzegovina passed a Decision approving the Program of expenditure of funds determined in the FBiH Budget for 2023 to this Ministry “Subsidies to private companies and entrepreneurs – Regression of interest – Guarantee Fund” in the amount of 5,200,000 BAM.
The funds are intended for regressing interest to large companies and exporters on loans from the Guarantee Fund of the Federation of Bosnia and Herzegovina.
This program is the result of the Government’s efforts to continue finding measures to help the economy of the Federation, due to difficulties in the business operations of companies.
The right to grant grants under this program is exercised by companies that are indebted under the existing programs for large companies and exporters, or will be indebted in 2023 under the Credit Guarantee Program for Large Enterprises and the Credit Guarantee Program for Exporters.
Beneficiaries of the guarantee fund will automatically be given the option of using the funds for interest regression, and they will acquire the right to interest regression for the I, II, III and IV quarter of 2023, if they have properly settled their previous loan obligations.
The main goal of the Program is to enable users to receive grant funds in the name of subsidizing part of the interest costs. Part of the interest on these loans will be subsidized, on a quarterly basis and up to 2.5 percent. Subsidies will be granted to users of credit funds until the end of the fiscal year, i.e. until December 31, 2023. years.
The interest subsidy procedure will be carried out by refunding part of the interest on loans approved for these credit programs, intended for maintaining current liquidity and the existing level of employment, procurement of working capital, completion of already started investments, as well as the initiation of new business activities, and the growth and development of existing ones.
They also relate to increasing competitiveness, development and introduction of innovations, new employment, as well as the purchase of land, business premises and business shares, and refinancing of existing loans and obligations based on financial leasing.
The funds spending program defines the legislative framework, goal, purpose of funds, beneficiaries, available funds, duration of the program, level of the subsidized interest rate, conditions to be met by the beneficiary, as well as the procedure for approving the funds.
The Federal Ministry of Energy, Mining and Industry, the Federal Ministry of Finance and the Development Bank of FBiH are responsible for the implementation of today’s decision, each within the scope of their competence.
The decision also determined that the Federal Ministry of Energy, Mining and Industry will submit reports to the Federal Ministry of Finance and the Government of the FBiH in accordance with the Law on the Execution of the FBiH Budget for 2023 and the Program.
The program established that the Development Bank of the FBiH and the Federal Ministry of Energy, Mining and Industry will define mutual relations through an agreement on the realization of interest regression activities – Guarantee Fund, which will regulate the detailed procedure of interest subsidies.
Therefore, prior approval was given for the conclusion of this contract, and the Federal Minister of Energy, Mining and Industry was authorized to sign it.
The Ministry will publish the program and decision in the Official Gazette of the Federation of BiH and on the Ministry’s website.