“Hidroelektrane na Drini”, a subsidiary of the state-owned electricity utility ERS, will secure a loan of €10 million from the Investiciono-razvojna banka (IRB) of Republika Srpska, with the RS Government providing a state guarantee for repayment obligations.
The borrowing arrangement has a repayment period of 18 months and carries an interest rate of 6%. According to government documentation, the financing will be used to support capital investment projects within the company’s portfolio.
Under the guarantee decision adopted by the Government, Republika Srpska has committed to covering all overdue and unpaid liabilities if the company, together with its parent utility ERS, fails to meet obligations toward the lender. The guarantee mechanism stipulates that any unpaid installments would be settled directly from the entity’s budget resources.
The latest financing move comes after Republika Srpska’s Minister of Energy and Mining, Petar Đokić, confirmed earlier this year that construction activity on the HPP Bistrica hydropower project had been reduced due to financial constraints. “Hidroelektrane na Drini” is the investor behind the development of the project.
Financial pressures on the company were also reflected in its most recent annual results, as the hydropower producer ended the previous year with a net loss of around €1.2 million, further highlighting ongoing fiscal strain in the sector.
