LOANS OF INVESTMENT DEVELOPMENT BANK

The RS Investment Development Bank (IDB) approved the total of 91 million KM of loans, while ten million KM is in the procedure of approval, with the tendency of increasing loan potential.

Hypo Alpe Adria Bank from Banja Luka had the biggest number of approved loan applications: 196, which was followed by Unicredit Bank from Banja Luka with 179 and Nova banka from Banja Luka with 152 approved loan applications.

"Most funds, more than 30 million KM has so far been plasirano through Nova banka, and this is followed by Hypo Alpe Adria Bank, with close to 28 and Unicredit bank with a little more than 12 million KM". Komercijalna banka and Volksbank from Banja Luka are in the procedure of approving loans, because they signed the contracts on cooperation with IDB only in the second half 2008.

Looking by the lines of credit for microbusiness in agriculture, the most successful bank is Bobar banka with ten approved applications, the total sum of 289.524 KM. With the line of credit for agriculture, Hypo Banka takes the first place with 5.3 million KM of approved funds, and is followed by Balkan Investment Bank with 3.3 million KM.

IDB informs that Nova banka with 31 approved applications and 21.34 million KM is the most successful mediator in the line of credit for entrepreneurs and enterprises, and this is followed by Hypo banka with 13 applications and 13 million KM.

With 178 approved applications for housing loans and the total sum of 9.5 million KM, Hypo bank is the most successful mediator with this line of credit.

This is followed by Unicredit bank with 163 applications and the sum of nine million KM, as well as by Nova banka with 113 approved applications of total sum that is somewhat bigger than six million KM.

II

Contract on Construction of Shopping Centre “Merkator” from Banja Luka signed

Business systems “Меrkator” from Ljubljana and the Company in Construction Building “Krajina” signed the Contract on Building the Shopping Centre “Merkator” in Banja Luka, in which 80 million KM will be invested.

The Government supports such business results and this is the proof that Republika Srpska is an acceptable place for foreign investors. The RS Government will, through its system laws, support and improve the business environment for foreign investors.

Djuric sad that the shopping centre, with the area of 41.500 square meters in the first stage will be completed by end of November, and it is expected to open in March next year.

“Merkator” has a goal to open similar shopping centres in all bigger cities in Srpska, and the one in Banja Luka will be the biggest in BiH, it will have at least 40 shops and will employ more than 300 workers.

III

Projects for development of agriculture

Ministry of Agriculture, Forestry and Water Management in Republika Srpska is implementing a number of projects financed through the credits of the International Fund for Agricultural Development – IFAD and the World Bank – IDA.

The Projects are implemented through the Unit for Coordination of Agricultural Projects and four of them are currently active, more precisely, “Development of Cattle-Breeding and Rural Financing”, “Development of Entrepreneurship in the Village”, “Development of Small Commercial Agriculture” and “Development of Agriculture and Rural Areas”.

The Project “Development of Cattle-Breeding and Rural Financing” is financed through IFAD load, the drawdown period is from 2002 to 2009, and it comprises 11, mainly undeveloped municipalities of Republika Srpska. The value of project for the RS is nine million dollars, of which IFAD loan is six million dollars.

As part of this project 4.7 million KM worth of loans have been approved so far, with 647 agricultural producers and 12 small and medium-sized enterprises, sole proprietorship businesses.

The Project “Development of Entrepreneurship in the Village” is being implemented from IFAD loan and a part of the loan that relates to the RS is 7.6 million dollars. The value of the entire project for the RS is ten million dollars, and it covers 12 municipalities.

The project “Development of Small Commercial Agriculture” is financed by the World Bank and it covers municipalities Trebinje, Ljubinje, Bileca and Berkovici. The total planned costs comprise 6.143.879 dollars.