The European Investment Bank (EIB) signed two loans totalling EUR 45 million in Serbia today with two different local financial institutions in support of the projects of small and medium-sized enterprises (SMEs) and infrastructure schemes promoted by local authorities. The loans are designed to assist Serbia in its efforts to integrate into the European Union.

A first finance contract for EUR 25 million was signed with Erste Bank Novi Sad. This loan aims at financing SME projects, small and medium-sized infrastructure schemes promoted by local authorities and industrial investments in the fields of the knowledge economy, energy, environmental protection, health and education. The EIB will finance up to 100% of the total project cost for SMEs (with a maximum of EUR 12.5 million per project) and up to 50% for other types of project. A minimum of 70% of the loan will be allocated to SME lending.

The EIB also signed an operation for an amount of EUR 20 million with KBC Banka with the same features as the one just mentioned.

These operations constitute the first direct lending to the two borrowers and represent a major contribution to the development of projects in the respective economic sectors.

Note to editors:

The priority objective of the EIB, the European Union’s bank, is to contribute to the integration, balanced development and economic and social cohesion of the Member States. Outside the Union, the EIB implements the financial components of agreements concluded under European development aid and cooperation policies.

The EIB has been active in the Western Balkans since 1977 and is today the largest international investor in this region. Over the past nine years, the Bank has financed projects totalling EUR 6.1 billion in the Western Balkans.