With the signing of five contracts with small business entities in Canton Sarajevo the successfull realization of the joint project of the Ministry of Economy of Canton Sarajevo and BBI Bank continues. By the end of March, 40 million BAM of financial means will be placed in the development of economy in Canton Sarajevo. These means will be given to small business entities with lower interest rates, a thing made possible by the subvention of Canton Sarajevo.
Minister of Economy of Canton Sarajevo Muharem Šabić expressed satisfaction with the interest that the companies showed concerning these means, he also said that this whole project is a big hit and that it makes the local economy more competitive on the market. The Government of Canton Sarajevo plans to place CCA 100 million BAM to businessman via these kind of financial injections.
"Through the Small Business Development Act and through the realization of public-private partnership we opened a path that shows visible indicators of industrial growth. We want to direct one part of these means to startup companies and in that way give support to young people”, said Minister Šabić.
The means that are available now ammount to more than 3 million BAM and the following companies have signed contracts with the Director of the Sector for operations with legal entities of the BBI Bank Edin Brkić: Rondić Trgopek, Ećo Company, ANS Drive, Respect and AVC.
In this way, every one of these companies will improve its business through technological and human resource development. There is the production of biscuits, confectionery and bakery products of the company Rondić Trgopek, production and export of furniture of Ećo Company, construction industry of ANS DRIVE as well as support to AVC company and to their business of projecting in the field of audio-visual and video applications to procurement of the first OB Truck in HD resolution. Support to the service sector has been giving through helping the company Respect which provides book-keeping services and consulting services in the field of finances, payroll accounting and business auditing for a number of diplomatic representations and business entities in Canton Sarajevo.
As Director Brkić stated, after the public call, the demand exceeded the supply, and the current 40 million BAM was not enough to satisfy the demand of clients.
“Unitl now, 26 companies have been financed from this credit line and 23 million BAM have already been placed. In its strategic plans, BBI bank has the goal of fostering the economy of BiH and realization of these projects is one of the ways we help to small and medium enterprises”, said Brkić.
It was announced that a new cycle of this kind of financing is possible, because the banks interest rate of 4.89 percent has been reduced to 1.89 percent, and that is the reason this kind of incentive is welcomed by the businessmen. The particpants of this meeting concluded that 40 million BAM is just a drop in the sea of expensive capital market, but that it is important to foster economy and create new values via these kind of incentives because as businessmen emphasize, every percent of interest rate is important in doing business and it opens new possibilities for development.