HOW ARE THE LOANS PLACED?
› Directly to clients
› Thru commercial banks
HOW DOES THE MECHANISM OF GRANTING THE LOANS FUNCTION?
› The loan instruments are placed directly to the client:
The Company submits to the RB FBIH a loan application together with the additional documents requested in order to justify the soundness of the investment or the financing of the company’s current business activities, in accordance with the Decree on the Bank Supervision Criteria and Procedures of the Development Bank of the Federation of Bosnia and Herzegovina (Official gazette of the Federation of BiH, No.: 57/08). The Department for Project Evaluation, Financing and Management shall review and evaluate the application material submitted and shall forward it to the Credit Board proposing a further review of the loan application. The RBF Credit Board makes a final approval decision based on the following elements:
• the client creditworthiness appraisal
• the project quality and investment justification
Once the above described process is complete, the RB FBIH shall notify the client on the approved loan application. The RBF and the client sign the loan agreement, pending the acceptance of collateral (mortgage registration and/or security rights), in accordance with the RB FBIH Rules on Collateral. The transfer of the loan instruments is done following the agreed one-time payment of the application processing fee. Should the RB FBIH decide NOT to approve the loan application, the client shall receive its decision with a detailed explanation as to the reasons why it had turned-down the loan application in question.
› The loan instruments are placed thru a commercial bank (hereinafter, the “Bank”)
The company submits the investment program to the Bank for its approval justifying the investment, together with the additional documents needed for the loan file. The Bank evaluates, reviews and approves the loan application via its Credit Board; the Bank sends to the RB FBIH a request to grant a loan to finance the project in question, ensuring that all the supporting documents regarding the content of the loan file, as stipulated by the Banking Agency Rules, are forwarded as well. The RB FBIH Credit Board approves the loan based on the following elements:
• the current assets available,
• overall project quality and company rating,
• evaluation of the Bank credit rating.
The RB FBIH submits to the Bank the approval decision on the loan application, based on which the Bank concludes an agreement with the client; regulates the collateral for the approved loan following the RB FBIH decision in accordance wit the RB FBIH Rules on Collateral. Once all the described requirements are met, the Bank and RB FBIH sign a loan agreement and grant the loan.