The European Bank for Reconstruction and Development (EBRD) and OTP Leasing Srbija doo New Belgrade have concluded a loan agreement in the amount of up to 10 million euros within the Regional Competitiveness Support Program for Small and Medium-Sized Enterprises.
The loan is fully secured by a guarantee from the parent company, OTP Bank Serbia, the leading lender in the Serbian banking market, the statement said.
“The project supports SME investments for the improvement of production capacities and harmonization of processes with the European Union with directives for environmental protection, protection of workers and safety and quality of products. Eligible projects will be selected on the basis of technical and financial criteria set out in the provisions of the regional SME Competitiveness Support Program. SME support is a combination of easier access to finance with and without technical cooperation support,” the statement said.
It further states that the project contributes to supporting SMEs in accessing funding for investments that are in line with EU standards and will help SMEs gain advice and knowledge to include and implement EU standards and achieve competitiveness.
Technical cooperation includes the support of the Consultants for assistance in the implementation, marketing and monitoring of the Program and separate verification of the technical implementation of investments by further loan beneficiaries before the release of incentive funds. The program is supported by the EU, which has provided funds in the amount of 1.5 million euros for investment incentives to further borrowers for the implementation of investments that meet the requirements in accordance with the provisions of the Program.
The EBRD is the leading investment institution in Serbia. To date, the bank has invested over 6.9 billion euros in 296 projects in the country. The bank’s focus in Serbia is on developing the private sector, improving public utility infrastructure and facilitating the country’s transition to a green economy, Biznis reports.
