IFC and Austria Support the Roll-Out of Energy Efficiency Loans for the Housing Sector in Bosnia and Herzegovina
In Washington, D.C.
Lucie Giraud
Phone: (202) 458-4662
Email: lgiraud@ifc.org
Rita Jupe
Phone: (202) 458-8967
Email: rjupe@ifc.org
Washington, D.C., October 16, 2006
– The International Finance Corporation, the private sector arm of the
World Bank Group, has signed an agreement with Raiffeisenbank Bosnia-Herzegovina
to provide a €350,000 grant, which will allow it to develop and roll
out energy efficiency housing loan products in the country. The grant,
which supplements an initial loan of €15 million loan made to RBBH in
July 2006, was made possible through a contribution from the Austrian Development
Cooperation to IFC’s Environmental Opportunities Facility.
Much of the housing in Bosnia and Herzegovina
is of poor quality and has not been upgraded due to a long period of war.
The grant, part of which will finance capacity building and training activities,
will support the incorporation of an energy efficiency component into RBBH’s
existing mortgage loan products.
Rachel Kyte, IFC’s Director for Environment
and Social Development, said, “In partnership with Austria and Raiffeisenbank,
we aim to demonstrate that energy efficiency is a profitable component
of the mortgage industry and has clear environmental and social benefits.
We have financed similar projects in
Eastern Europe and Russia, and we are happy to use our expertise in Southeast
Europe."
Ognjen Samardžic, a management team
member of RBBH, said, “Under current conditions in Bosnia and Herzegovina’s
banking market, cooperation with IFC will help us continue developing innovative
products, such as loans for energy efficiency projects. In addition to
helping us offer quality products with favorable interest rates to customers,
the program aims to reduce energy consumption and pollution in the country.”
Jyrki Koskelo, IFC’s Director for Global Financial Markets, said, “Energy
efficiency and clean energy are a strategic priority for IFC. There are
increasing opportunities, not only in Europe but globally, and we are ramping
up our investment and support in this sector in cooperation with the Austrian
government and other partners.”
Ambassador Michael Linhart, Managing Director of the Austrian Development
Agency, said, "Promotion of sustainable and socially balanced economic
development is one of the main objectives of the Austrian Development Cooperation
in Southeast Europe. The provision of renewable energy and solutions to
enhance energy efficiency are important tools for private sector development,
including creation of employment opportunities in the region. And these
measure can alleviate the often tense relationship between the aims of
economic growth and environmental protection."
IFC and Austria have already teamed up in Bosnia and Herzegovina, where
IFC provided a €3 million loan to Ekonomic Kredit Institution. The
Austrian Development Cooperation complemented the loan with a €60,000
grant to train EKI’s loan officers in processing energy efficiency housing
loans.
As of June 2006, IFC had committed more than $285 million to support sustainable
energy projects in industrial, municipal, and residential sectors in Eastern
and Central Europe, Russia, China, and the Balkans. In FY06, IFC leveraged
a total of $1.8 billion in sustainable energy projects worldwide.
About IFC
The International Finance Corporation,
the private sector arm of the World Bank Group, is the largest multilateral
provider of financing for private enterprise in developing countries. IFC
finances private sector investments, mobilizes capital in international
financial markets, facilitates trade, helps clients improve social and
environmental sustainability, and provides technical assistance and advice
to businesses and governments. From its founding in 1956 through FY06,
IFC has committed more than $56 billion of its own funds for private sector
investments in the developing world and mobilized an additional $25 billion
in syndications for 3,531 companies in 140 developing countries. With the
support of funding from donors, it has also provided more than $1 billion
in technical assistance and advisory services. For more information, visit
www.ifc.org.
About Raiffeisenbank Bosnia-Herzegovina
RBBH is a member of the RZB Group and
a subsidiary of Raiffeisen International Bank-Holding AG. It is the
leading bank in Bosnia and Herzegovina, with 21.1 percent market share
in terms of assets, 72 outlets throughout the country, and more than 1,300
employees.
About the Austrian Development Agency
ADA is the operational unit of the Austrian
Development Cooperation and Cooperation with Eastern Europe. It is responsible
for the implementation of about 700 projects in partner countries as well
as the administration of the budget earmarked for bilateral programs. ADA
takes part in multilateral development cooperation projects, both at the
European Union level and within international organizations, and cooperates
closely with nongovernmental organizations and private businesses.
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