IFAD OBJECTIVES

'Livestock and Rural Finance Development' project is the third project of International Fund for Agriculture Development (IFAD) for Bosnia and Herzegovina and the second one for Republic of Srpska . This project is financed by IFAD through credit for BiH. Participation of IFAD in total amount of the project is 2/3, while entity government provides 1/3. Differently from the previous two projects that had character of urgent social interventions, the 'Livestock and Rural Finance Development' project has the developing character.

Objectives and tasks in scope of the 'Livestock and Rural Finance Development' project have been defined in the Contract signed between Agency for Local Development Initiatives (ALDI) from Gorazde and Agricultural Projects Coordination Unit (APCU) from Banja Luka . The Contract has been signed on December 30, 2003 . Overall objective of the project is to support small and medium sized enterprises (SMEs) with special credit line and with advising services for business development of SMEs.

In accordance with the Contract for business advising services the objectives of SMEs business development are to provide:

• Identification and appraisal of entrepreneurs’ ideas,
• Introduction with credit conditions,
• Introduction with methodology and provision of assistance with development of business plans that are suitable for commercial bank,
• Management training for enterprises that received credits.