The European Investment Bank (EIB) has signed financing agreements worth 30 million euros with Credit Agricole Serbia AD Novi Sad to support projects for small and medium-sized enterprises in Serbia. The loan is aimed at supporting Serbian companies and assisting the country’s efforts to integrate into the European Union. The financing agreement signed today is the first tranche of a total of 50 million euros of a credit facility already approved by the EIB Board of Directors.
The EIB loan will finance small and medium-sized enterprises projects and other projects promoted by local authorities and end-users, especially in the areas of production, agriculture and tourism. In the current environment, this project will increase the availability of financing for SMEs, which are key drivers of economic and social progress in Serbia, and will help accelerate the country’s approach to EU partners. The loan specifically encourages investments that include youth employment under the European Initiative for the Employment and Training of Youth in the Western Balkans (“EIET”).
The loan will be managed by Credit Agricole Serbia, the Serbian branch of the French Credit Agricole Group, the third largest bank in Europe and an established market player in the agribusiness sector. Part of the funding may be available to support the training and employment of young people within SMEs. It is expected to provide direct support for around 300 companies and maintain about 10,000 jobs.
“The Bank of the European Union is continuing its support activities for local businesses in Serbia. The contract signed with Credit Agricole Serbia will improve access for Serbian companies, including fast-growing mid-cap companies, long-term financing under favorable conditions, with positive effects on the labor market and social environment. We are pleased to continue our long-standing and successful partnership with Credit Agricole Group”, said Matteo Rivellini, Head of EIB Credit Operations Division in Croatia, Slovenia and the Western Balkans.
“Credit Agricole Serbia strives to be the leading partner of the Serbian economy by providing mid-cap companies with attractive financial solutions. Our continuous and fruitful cooperation with the European Investment Bank will enable local companies to further develop their businesses, employ more people and give a positive impuls to Serbia’s EU integration”, said Mr. Carlos de Cordoue, President of the Executive Board of Credit Agricole Serbia.
EIB in Serbia
Since 2000, the European Investment Bank has lent more than 5.74 billion euros to Serbia, supporting transport and environmental infrastructure, health, education, research and development and SMEs.
EIB in the Western Balkans
The EIB Group is one of the largest international funders in the region. Over the last 10 years, the EIB has provided over 8 billion euros in new finance to the Western Balkans. This reflects their commitment to supporting the construction and upgrading of critical infrastructure, as well as their multidimensional assistance to the private sector in the region, which is increasingly reinforcing the EU’s enlargement policy in the region.
