The European Investment Bank will provide EUR 50 million for Hypo Alpe-Adria-Bank a.d. Beograd in Serbia to on-lend in support of small and medium-sized investment. The new banking counterpart in Serbia, which is one of the major investors in the country, has a longstanding cooperation with the EIB in Austria and Slovenia. It will aim to develop SME and municipal projects in Serbia.
Vice-President Gerlando Genuardi underlined that the EIB supports the EU policy in Serbia. The Bank is extending its most relevant strategic priorities and financial services to investors in the country. A prosperous growing economy will bring about improved supply to the domestic market and increased international competitiveness, while creating more job opportunities, he added.
Hypo Alpe-Adria-Bank a.d. Beograd will use the funds from the EIB loan to finance small and medium-sized projects in the field of environmental protection, energy savings, industry, services and tourism. SMEs will benefit from loans between 4 and 12 years, while infrastructure projects will receive financing up to 15 years.
Project promoters will benefit from attractive conditions and will find easier access to long-term funding for investment in new productive assets. By supporting the Hypo Alpe-Adria-Bank a.d. Beograd, one of the largest banks in Serbia, the EIB helps to strengthen market competition conducive to a more dynamic and competitive private sector.
Hypo Alpe-Adria-Bank a.d. Beograd, which holds a market share and of 9,25% and has a wide business network, is the third largest financial institution in Serbia according to total placements, out which significant part belongs to financing of SMEs and local municipalities.