Eligibility criteria with regard to the sub-borrower

Sub-borrowers shall be:

  • SME – an enterprise that employes fewer than 250 employees, total assets up to 43 M€ or turnover up to 50 M€. The term SME includes individual entrepreneur/sole proprietor.
  • formed under the local laws and operating primarily in Bosnia & Herzegovina
  • in compliance with all applicable national environmental, social and health and safety legislation and employment regulations and standards in effect in Bosnia & Herzegovina, as well as any relevant public consultation obligations in effect in Bosnia & Herzegovina at the end of the project implementation process
  • not majority-owned or controlled by the government of Bosnia and Herzegovina or by a local government/political and administrative body.


Eligible investments should be:

  • in industrial premises, equipment, software, improvement of the enterprise management systems and or general upgrading that is designed to improve compliance with one or more of the EU Directives in the field of environmental protection, workers’ safety and product quality and safety, as listed in the Priority EU Directives, applicable to the relevant Sub-borrower; or with an EU Directive (other than a Priority EU Directive) which the PC has confirmed the Sub-borrower should comply with.

Eligible sub-project should be:

  • financially viable, meet the Borrower’s usual credit criteria and be assessed positively by the Borrower in accordance with its usual credit appraisal procedures 
  • undertaken in Bosnia & Herzegovina 
  • not benefitted, or will not benefit, from another grant
  • relevant to expenditures that will incur after the date of the loan agreement between the investor and the partner bank


  • the sub-borrowers with business in gambling, real estate, banking, insurance or financial intermediation, production and/or sale of tobacco and hard liquor, manufacture, supply or trade in arms and all other activities excluded by the EBRD policies
  • working capital, except to the extent that such working capital requirement is an integral part of the investment cost of the eligible Sub-Project
  • speculation in property, financing of land purchase
  • speculation in shares, bonds and any other type of financial instruments
  • refinancing (or other displacement) of any existing loan or credit operation to the relevant SME borrower.

Developed by

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Funded by

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Implemented by

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Copyright © 2016 BiH-SME-CSF

This document has been produced with the financial assistance of the European Instrument for Pre-accession Assistance. The views expressed herein are those of the Consultant and can therefore in no way be taken to reflect the official opinion of the European Union.