ENT EXP FACIL (BEEF)

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The Enterprise Export Facility Project for Bosnia and Herzegovina aims to support sustainable economic growth by facilitating and expanding viable export activity. There are three project components. The first component consists of a working capital facility, a revolving line of credit that provides working capital loans to exporting enterprises having specific and signed export contracts. The second component comprises a performance bond facility which allows companies to tender for major construction and supply export contracts by giving security to bond giving banks. This security is provided by placing International Development Association (IDA) funds on trust in an offshore bank account available to reimburse commercial insurance companies that will guarantee the bond givers. The third component provides technical assistance to strengthen the Investment Guarantee Agency (IGA) and exporters. It institutionally reinforces the IGA's operations by building its credit assessment capability, assisting it in processing applications for working capital/performance bonds; and finances short-term assistance in such areas as financial management, auditing, and legal and environmental services. This component makes the services of external consultants available to exporters, and finances office equipment and vehicles for IGA as well as its operating costs.