EBRD launches 2010-2013 strategy for Bosnia and Herzegovina

The EBRD’s Board of Directors has approved a new strategy for Bosnia and Herzegovina that sets out priorities for the Bank’s activity in the country until 2013. The focus over the next three years will remain on financing and supporting projects in infrastructure and energy, financial and industrial and key export-oriented sectors. To mitigate the global crisis impact on the country, the Bank acknowledges need for an expanded level of activities in the coming years, both as crisis response and in support of the recovery process. The Bank will promote transition in Bosnia and Herzegovina by continuing and enhancing its efforts through the provision of financing and through intensive policy dialogue.

According to the new country strategy, the EBRD will devote its efforts to supporting development and implementation of a comprehensive reform programme in all infrastructure sectors. In particular, the Bank will provide support both for construction of new and modernisation of existing infrastructure, facilitating involvement of the private companies and better sector integration both regionally and within the country. In the energy area, the EBRD will continue to promote sector reform, institution building, regional energy integration, helping to enhance reliability and compliance with the EU emission standards. Investment for energy efficiency and renewable energy projects will be provided in parallel to public and private operators accordingly, including through the Western Balkans Sustainable Energy Credit Line Facility (WeBSECLF), technical assistance and direct financing.  In the financial sector, the Bank will support local banks, leasing companies and microfinance institutions (MFIs) to ensure sustainable lending to small enterprises and households and further developments in the SME sector.

At the same time, to attract strategic investors and to accelerate the privatisation process, the Bank will actively seek and develop projects in key export-oriented sectors, including agribusiness, manufacturing and services, telecommunications, pharmaceutical sector, property and tourism, as well as wood and metals processing. Economic growth in 2010 and 2011 is expected to be positive but modest. In the most recent economic outlook published on 28 October 2010, the Bank raised its previous growth forecast for Bosnia and Herzegovina from 0.4 to 0.8 per cent for 2010 and from 1.7 to 2.2 per cent for 2011. Given the low starting point, the economy should have potential for stronger growth over the medium term. Since the beginning of its operations in Bosnia and Herzegovina, the EBRD has committed over €1.2 billion in more than 80 projects in various sectors of the economy.

News source: EBRD link: article