A MoU with Union Bank formalized the green financing incentive scheme. This initiative combines traditional banking with grants funded by the Swedish International Development Cooperation Agency (Sida) through UNDP's Green Economic Development (GED) project, to create a stimulating investment environment for small and medium-sized enterprises.

“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. 

This partnership marks a pivotal advancement in supporting sustainable development and energy efficiency within Bosnia and Herzegovina’s SME sector. Together, UNDP and Union Banka are dedicated to creating impactful solutions that drive green growth and innovation.