Mr. Dino Osmanbegović, Member of the Managing Board Raiffeisen BANK Bosnia and Herzegovina AGRI-BUSINESS IN B&H Opportunities & Risks

Agriculture in B&H

 50 % of primary and secondary production in B&H destroyed during the war  No mid- or long-term strategy on the state level  Decentralized and limited subvention programs  Nonuniform economical space  Inadequate customs policy by import of seeds, fertilizers etc.  Deficit of quality control system for imported products

Agriculture in B&H  Slow recovering of primary production potentials*  Fruit growing - stagnation excl. production of grapes  Cattle raising - stagnation excl. sheep raising  Primary products - stagnation excl. honey

Agriculture and Banks

 Undefined legal status of farmers  High percentage of imported production material  Deficit of system for certifying domestic products  Specifics of production cycles  High influence of force majeure  Inadequate collateral  Undeveloped financial infrastructure causing  Low credit culture Inadequate funding sources !!!

TO DO’s - AGRI-Businnes  Consequent transition to market economy  Modernization of production  Certification of products  Establishment of marketing unions and cooperatives  Economies of scale in AGRI-Business TO DO’s - Banks  Introduction of tailor made loan-products  Adaptation of lending procedures  Creation of specialized products  Education of staff - specialized skills Agriculture and Banks

Raiffeisen BANK

Farmer Secondary producer Food industry/ Wholesale FINANCING RBBH’s focus in the supply chain

 Cooperation with  primary producers - SME  middle sized producers and cooperatives  the majority of the most significant B&H secondary producers Raiffeisen BANK

BIMAL - Edible Oil Refinery in Brčko  06/ Privatization  Initiating domestic production of edible oil  by-product: meal for production of cattle feed  Deficits of the production chain  lack of quality raw materials’ base/ local primary production  import of oleiferous plants  Opportunity for opening new chain through producer of cattle feed  RBBH Role  Partner Bank in the privatization process  Investment loan  Financing purchase of raw materials

 SME Loans  Financing import of production material  Trade/Export Financing  Working Capital Financing  Leasing of Machinery - Raiffeisen Leasing Raiffeisen BANK Products and services

Raiffeisen BANK Fund Management Company Brokerage Company Insurance Company Leasing Company Mr. Dino Osmanbegović, Member of the Managing Board Raiffeisen Group Bosnia and Herzegovina