KfW Development Bank and Erste Bank Serbia have signed a loan agreement for a total credit line of 30 million euros to support green initiatives and the development of the competitiveness of micro, small, and medium-sized enterprises (MSMEs) and agricultural households in rural areas of Serbia.
The funds for this project have been approved by the German government for the Republic of Serbia. Through KfW, German cooperation aims to support the goals of the Serbian government in promoting green investments and supporting MSMEs in rural areas.
A tranche of 10 million euros will be directed towards financing investments to improve the efficiency of natural resource use, resource recycling, and the reduction of harmful emissions to protect the environment. From this tranche, Erste Bank will grant loans to MSMEs, agricultural households, and local self-governments. Successful completion of projects will give them the opportunity to qualify for non-refundable funds equal to 10% of the loan amount.
The second tranche, amounting to 20 million euros, is intended for various types of investments to strengthen the competitiveness of rural areas, also through financing MSMEs and agricultural households.
“Thanks to our shared values with our partner KfW in terms of ESG principles, we have provided easier access to favorable sources of financing for our clients.
Green investments are investments in the future and are an obligation not only for every company but also for every inhabitant of this planet as a contribution to environmental preservation. On the other hand, by ensuring equal development opportunities across the entire territory of Serbia, we help not only to reduce inequality but also to create conditions for a better life beyond the largest cities,” stated Jasna Terzić, CEO of Erste Bank.
“The support for green and rural financing is one of the main goals of German development cooperation in Serbia, and we are confident that we are on the right path to achieve that goal with our proven partner, Erste Bank. This new agreement is part of joint programs with the Government of Serbia that will provide additional support to the Serbian economy and the financial sector in promoting socio-ecological transition and preparing micro, small, and medium-sized enterprises for entry into EU markets,” said Rüdiger Hartmann, Director of the Belgrade office of KfW.
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