The EBRD is considering providing a loan of up to €68 million to a leading Serbian home-care and beauty products producer Beohemija d.o.o . to support the company’s further development and financial restructuring of its balance sheet. When approved by the EBRD’s Board of Directors, the project is expected to have the following transition impact:
(i) Demonstration of successful restructuring of a leading company in the chemical sector in Serbia. This is going to be achieved through operational and technological restructuring in order to improve productivity, energy efficiency and environmental safety. The new production lines will use the latest technology from well-known producers, efficient in cost management and entailing significant energy savings. The Project will therefore provide a showcase to others in the market on how to be financially successful and energy efficient
(ii) Setting high standards of corporate governance and business conduct through improvements in financial reporting and environmental performance. The Company will take steps towards improving its accounting systems as well as environmental and labour protection practices and as a result will set standards in the local chemical sector.
Beohemija and its subsidiaries will be required to introduce IFRS accounting, apply the EBRD’s environmental standards and implement an Environmental Action Plan. This is particularly important for a company operating in the Serbian chemical sector, where most companies have still not implemented the best available practices and EU standards. The final decision will be made on 12th of July.
Source balkans.com
