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EBRD in Bosnia and Herzegovina

October 2011

Agenda  EBRD at a glance  Bosnia and Herzegovina – economic highlights  EBRD in BiH 2 .

8 billion Unaudited as at 31 March 2011 . the Board of Governors approved the Bank’s capital increase from €20bn to €30bn authorised capital. Cumulative commitments of €61. promotes transition to market economies in 29 countries from central Europe to central Asia  Owned by 61 countries and two inter-governmental institutions  Capital base of €30 billion* *At the Annual Meeting in Zagreb in May 2010.What is the EBRD?  International financial institution.

9 & equity = 0.8bn in more than 3.1bn (debt = 0. Equity 19% of EBRD finance  €1.EBRD in 2011 Invested over €61.164 projects since 1991  Private sector > 78% of EBRD finance  Debt 81%.2) invested in 2011 so far Reconciled as at 31 March 2011 Net cumulative business volume  Annual business volume (ABV) € billion .

What are the EBRD’s objectives?  To promote transition to market economies by investing mainly in the private sector  To mobilise significant foreign direct investment  To support privatisation. restructuring and better municipal services to improve people’s lives  To encourage environmentally sound and sustainable development .

convertible  Common/preferred shares  Long term  Mezzanine financing  Working capital   Fixed / floating interest rates Exclusively minority participations (up to 35%)  “Portage Equity“  Political risk guarantees Syndication  In-house syndication unit  Lender of record  EBRD‘s Preferred creditor status attracts other financiers . subordinated.EBRD offers a variety of different financing instruments Loans Equity  Senior.

Agenda  EBRD at a glance  Bosnia and Herzegovina – macroeconomic highlights  EBRD in BiH 7 .

 Macroeconomic improved.there is still no state-level government. performance in 2010 has slightly .Bosnia and Herzegovina Macroeconomic highlights  Long delays in forming governments at all levels .  Real GDP growth is estimated to have reached 0.2%.  Almost no progress has been made towards EU approximation.7 per cent last year and for 2011 GDP is estimated at 2.

 Low level of FDI in 2010 – around EUR 200 million.  Privatisation process needs to be accelerated to bring new investments.  Key for economic recovery and future sustainable growth: continued implementation of public sector reform and adherence to the IMF agreement .Bosnia and Herzegovina Macroeconomic highlights  Business environment conditions are still difficult with burdensome administrative procedures for enterprises.

Agenda  EBRD at a glance  Bosnia and Herzegovina – macroeconomic highlights  EBRD in BiH 10 .

EBRD is a major investor in BiH • To date. EBRD signed 84 projects with cumulative business volume of more than EUR 1.8 billion • In the period January 2007 to October 2011 the EBRD signed 50 new projects amounting to EUR 733 million. 11 .3 billion • Mobilised total investments of EUR 2.

Bosnia and Herzegovina: EBRD portfolio by sector 12 .

reduce losses and improve energy efficiency. Grant co-financing of EUR 10.5 million from EU and Sida. Joint financing with EIB. 2007: EUR 7 million loan to help finance construction of a waste water network and reconstruction of water supply network 2010 Bijeljina II WWTP 2010: Additional EUR 5 million loan for the construction of a wastewater treatment plant and the expansion of the wastewater collection network.Selected Public Sector Investments Signed 2008 2005 2010 2007 Client Corridor Vc Regional Railways Project Bijeljina Water and Wastewater Project Project Loan of EUR 180 million for construction of priority motorway sections of TransEuropean Corridor Vc through Bosnia and Herzegovina. . 2010: EUR 10 million loan increase to top up savings and enable completion of the reconstruction of the southern section of railway Corridor Vc. to ensure a more reliable power supply. 2010 Deposit Insurance Agency (DIA) EUR 50 million credit line to enable DIA to increase the deposit insurance coverage. 2006 Power Distribution Project EUR 55 million loan to help modernise the electricity distribution infrastructure in the country. Parallel financing provided by EIB. 2005: EUR 70 million loan for railway track renewal and upgrade of station and route control signaling.

2008: EUR 6m financing for agri-commodities financing 2009: A follow up loan of EUR 4m for permanent working capital financing Long term loan of EUR 25m loan alongside additional financing of EUR 25m from other participating banks EUR 6. Kazakhstan. Exit in 2007 2007: Long term loan of EUR 4m to support VF Komerc restructuring effort and transformation from a retailer into a property management company. supporting the privatization of BH Steel 2005 Arcelor Mittal Zenica EBRD committed close to EUR 70m to Mittal Steel in BiH.Selected Private Sector Investments Signed Client Project EUR 25m senior long-term loan. Romania.2m for financing the renovation of a disused brick factory in Sarajevo for production of a range of clay bricks 2006 Natron Hayat Maglaj EBRD provided EUR 11m loan alongside additional financing of EUR 99m from other international and local commercial banks 2006/ 2007 LEF: VF Komerc 2008/ 2009 LEF: Bimal Brcko 2009 Konzum Sarajevo 2010 LEF: Bingo Tuzla 2006: EUR 8m equity investment for expansion of operations and upgrade of existing. FYR Macedonia 2005 Tvornica Opeke Sarajevo Senior long-term loan of EUR 6.5 m long-term debt for the expansion of retail activities in BiH .

Unicredit leasing 2010 EU/EBRD WeBSECLF -Raiffeisen bank 2010 Intesa SanPaolo Bank Project SME Credit Line of EUR 15m SME Credit Line of EUR 30m SME Credit Line of EUR 5m SME Credit Line of EUR 10m SME Credit line of EUR 8m SME Credit line of EUR 20m .Selected Financial Institutions Investments Signed Client 2009 Unicredit Leasing 2009 Unicredit Bank 2010 EU/EBRD WeBSECLF Unicredit bank 2010 WBCFF .

EBRD Special available programmes  EBRD-Italy Local Enterprise Facility (LEF) – Established jointly by the EBRD and the Italian Government in 2006. – To meet the growing financing needs of dynamic local enterprises. – €270 million proprietary investment vehicle for small and mediumsized enterprises in the region. not sufficiently supported by other financing sources. as well as tailor-made debt financing. . – A delegated facility for equity and quasi-equity investments.

EBRD Special available programmes  Western Balkans Sustainable Energy Direct Financing Facility and Western Balkans Sustainable Energy Credit Line Facility – Facilities established by the EBRD to provide debt financing for small renewable energy and energy efficiency projects. small and medium-sized enterprises with direct assistance from experienced business advisors and consultants.  TAM / BAS – The complementary TurnAround Management (TAM) and Business Advisory Service (BAS) Programmes provide micro. helping them to adapt to the demands of a market economy .

Thank you for your attention Giulio Moreno 18 .