UNDP in BiH and Union Banka: New Partnership to Enhance Green Finance for SMEs in Bosnia and Herzegovina

The United Nations Development Programme in Bosnia and Herzegovina (UNDP in BiH) and Union Banka d.d. Sarajevo signed an official Memorandum of Understanding (MoU) and Letter of Intent today. This important collaboration aims to advance energy efficiency and renewable energy initiatives among small and medium enterprises (SMEs) in Bosnia and Herzegovina.

“This collaboration is a significant step forward in our shared mission to support SMEs in Bosnia and Herzegovina with innovative financial solutions that promote energy efficiency and renewable energy. Joint efforts play a crucial role in driving sustainable development and addressing climate challenges,” 

“Sweden supports Bosnia and Herzegovina through numerous initiatives, including UNDP's GED project, which drives green growth and enhances energy efficiency within SMEs. This partnership with Union Bank contributes to both economic advancement and environmental stewardship,” 

emphasized Eva Smedberg, Head of Development Cooperation at the Embassy of Sweden.

Within this framework, UNDP in BiH, with funding from Sweden, will subsidize the interest rates, enabling SMEs to access loans from Union Bank with no interest expense. This initiative effectively offers free loans to SMEs, alleviating financial burdens and promoting sustainable business growth.

"Union Bank is proud of its partnership with UNDP in support of the green transition of small and medium-sized enterprises in Bosnia and Herzegovina. By providing financial resources to improve energy efficiency and adopt green practices, this partnership contributes to Union Bank's strategic commitment to building a more resilient and sustainable economy," 

stated Vedran Hadžiahmetović, CEO of Union Bank.