- Financed SMEs report 15 additional jobs for every €1 million of EIB-backed loans, and higher investment (increasing fixed assets by 35%), than other comparable firms.
- The impact on employment is stronger for firms that had no previous access to finance, suggesting the importance of the favourable market conditions offered by EIB loans.
The European Investment Bank (EIB) has been instrumental in supporting lending to SMEs in the Western Balkans since 2008. In that time it has financed loans on favourable terms to 28 400 companies.
Published today, “The impact of the EIB’s intermediated lending to businesses in the Western Balkans” assesses the impact of EIB intermediated lending to SMEs in Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia between 2009 and 2023.
Key findings include:
Positive impact on employment: SMEs benefiting from EIB loans reported a 15% increase in employment growth, surpassing similar firms that did not receive them. This impact corresponds to approximately 15 additional jobs for every €1 million of EIB loans issued.
Increased investment: Firms with EIB loans experienced a 20% rise in total assets and a remarkable 35% increase in fixed assets compared to those without, demonstrating the ability of EIB financing to enable SMEs to invest in a credit-constrained environment.
Stronger impact for firms with limited access to finance: The study found that the positive effects of EIB intermediated lending on employment were more pronounced for firms with no previous access to finance. This suggests that the favourable market conditions offered by the EIB are particularly beneficial for these businesses.
Speaking about the report, EIB Vice-President Kyriacos Kakouris stated, “EIB intermediated lending plays a crucial role in fostering SME growth and economic development in the Western Balkans. The positive impact on employment and investment further underscores the importance of the EIB support in addressing financing gaps and driving sustainable economic growth in the region. We are committed to continuing our support to the private sector in the region.”
As highlighted by Chief Economist of the EIB Debora Revoltella, “This study demonstrates the positive effects of EIB financing in empowering businesses to invest, expand and contribute to the long-term development of the region. It also highlights Bank’s crucial role in promoting financial inclusion by granting SMEs first-time access to bank lending finance.”
For more information about the study, consult the publication here.
The EIB Group works closely with public and private sector partners to support sustainable investment, job creation, economic growth and innovation across Europe.