European Union provides €160 million for the sustainable growth of Serbian SMEs through EIB Global, Banca Intesa and Intesa Leasing partnership
To spur growth, employment, and the green transition, the European Union has provided a €160 million financial package to support Serbian businesses. This initiative, which was announced on November 28th at a ceremony in Belgrade, is the result of a partnership between EIB Global of the European Investment Bank (EIB), and Banca Intesa and Intesa Leasing, as part of a wider collaboration with Intesa Sanpaolo, a banking group leading in Europe. The funds will be available at favourable terms to small and medium-sized enterprises (SMEs) and mid-caps in order to address their working capital and investment needs, as well as to boost green investments in renewable energy, clean transportation and energy efficiency projects. This support will benefit around 240 companies and protect around 25 000 jobs, thus driving climate resilience and competitiveness in the local economy.
As part of the EU for Green Agenda in Serbia initiative, the European Union is providing technical assistance to help set up the credit line effectively. This involves supporting Serbian SMEs in developing bankable green investment projects and assisting Banca Intesa to expand its offer of green financial products and services to small businesses in the country
Vice-President Robert de Groot, who is responsible for EIB activities in the Western Balkans said “By providing long-term, affordable funding, Intesa Sanpaolo Group and the EIB are collectively contributing to enhancing the resilience and decarbonisation of the Serbian economy, while spurring job creation, productivity and innovation. This approach brings the Serbian market closer to EU standards and encourages regional market integration in line with the Growth Plan for the Western Balkans.”
Up to now, the banks have made €780 million available in EIB credit lines and Banca Intesa and Intesa Leasing funding to support over 1 500 companies in Serbia, which has helped to protect some 86 000 jobs and create 1 700 new ones
Up to now, the banks have made €780 million available in EIB credit lines and Banca Intesa and Intesa Leasing funding to support over 1 500 companies in Serbia, which has helped to protect some 86 000 jobs and create 1 700 new ones.
Banca Intesa Beograd CEO/Executive Board President Darko Popović stated “The EIB is our key partner in efforts to support sustainable economic growth in Serbia by creating an environment where businesses can innovate, expand and reach their full potential. Our partnership, which has existed for almost two decades, has improved access to investment, working capital and green finance for SMEs, by providing long-term loans of higher amounts at favourable interest rates, contributing to the improvement of Serbia’s economic landscape and its transition to carbon neutrality.”
Head of the EU Delegation to the Republic of Serbia Emanuele Giaufret stated: “SMEs are the backbone of the Serbian economy and the EIB loans to enable new credits complements well what the EU has been doing via grants. Yesterday, the European Parliament voted the confidence to new European Commission team, which will start working on 1 December. Enlargement is very high on its agenda, and it is time to roll up our sleeves and accelerate reforms for the benefit of Serbian citizens and to boost the economy, The Growth Plan with its timetable for reforms to improve business environment and its 1.58 billion in additional financing can bring tremendous benefit to Serbian SMEs.
We already have a track record in supporting SMEs in Serbia for instance through the project “Serbia and the EU – equipment for SMEs” – the total budget is €27 million and provided companies with new machinery and equipment, or through the Innovation Fund to finance start-ups and high-tech innovation. Since 2001, the European Union’s support for innovation and competitiveness in Serbia, including SMEs, has totalled more than EUR 250 million. I am glad that our EIB colleagues can provide extra funds for the sector with this credit line of another 160 million Euros announced last year. This shows again: the EU is there for the people in Serbia and, in this case, in particular for the businesspeople and the economy and helps them to meet their targets in the light of climate change. Our platform “EU for Green Agenda in Serbia” with additional funds from Sweden, Switzerland and UNDP for a total of €15 million provides mentorship to small and medium sized enterprises, as well as grants and support to identify businesses that can be scaled up with an additional bank credit. Mitigating climate change is for everyone and we want to enable as many businesses as possible to become greener. The EU jointly with the EIB are the biggest providers of climate finance in the world.”
