EU: 250 million euros to Serbia for small businesses, 37 million to Kosovo

The European Investment Fund has made available around 750 million euros for small businesses in the Western Balkans, of which Serbia will receive 250 million euros and Kosovo 37 million, according to data from the EU delegations in Serbia and Kosovo.

The European Investment Fund (EIF), a part of the EIB Group, has concluded portfolio guarantee agreements with 11 banks and financial intermediaries in the economies of the Western Balkans.

These agreements, funded under the EU's WB EDIF initiative "Guarantees for SME Resilience," will enable local banks and financial institutions to create a portfolio of loans for SMEs worth over 750 million euros, including those that will be signed in the first half of 2024.

These funds will facilitate access to finance for small businesses and improve their resilience to current economic challenges, enabling business expansion, job creation, and innovation development. It is expected that these guarantees in Serbia will facilitate the placement of loans under favorable conditions totaling 250 million euros for around 4,650 SMEs, preserving about 64,000 jobs. On the other hand, in Kosovo, these guarantees will facilitate the placement of loans under favorable conditions totaling 37 million euros for around 690 SMEs, preserving about 9,500 jobs.

Marjut Falkstedt, the CEO of EIF, commented on this occasion.

"By supporting small businesses in the Western Balkans, especially in its most neglected and sensitive segments, these significant financial resources will enhance their capacity for innovation and growth, contributing to further integration into the European Union's economy. This will provide an additional boost to the development of strong and competitive economies in the region, as well as their progress in global value chains," Falkstedt stated.

Thanks to EIF guarantees, around 2.5 billion euros have been mobilized for over 38,000 SMEs in Serbia, contributing to the preservation of 637,000 jobs.

Emanuele Giaufret, the Head of the EU Delegation and EU Ambassador to Serbia, emphasized his satisfaction that the European Investment Fund, thanks to the guarantees provided by the EU, could direct financial resources to a larger number of small and medium-sized enterprises in Serbia.

"More accessible loans granted through local banks will enable companies to realize their potential in terms of growth and innovation while creating new jobs. Our strong support for SMEs is crucial for bringing Serbia's economy and the region closer to the European Union, as the main goal of its Growth Plan for the Western Balkans," Giaufret said.

EU Ambassador to Kosovo Tomas Szunyog added:

"Thanks to our joint efforts, small and medium-sized enterprises in Kosovo will be able to increase their financing opportunities and access loans under favorable conditions. This EU-funded initiative will help such enterprises across the Western Balkans region better respond to economic challenges and grow," Szunyog said.