Sitemap

EBRD invests record €516 million in Serbia in 2019

CorD Recommends

Balkan Borders Blur as Free Labor Movement Pact Launches

Marking a significant shift in the labor...

Serbia Commits €5.4 Billion to Renewable Energy by 2030

Serbia's state-owned power company, Elektroprivreda Srbije (EPS),...

Serbia and Angola Cement Cultural Bonds with New Cooperation Programme

Serbia and Angola have inked a Cultural...

Serbia Awards Distinctions to Notable Personalities on National Day

In a ceremonial tribute to Serbia's National...

Putin Wins Russian Election Decisively

Presidential candidate Vladimir Putin has won 87.26 percent of the vote based on 60 percent of the ballots counted,...

Vaughan Gething to Become First Black Welsh Premier and First Black Leader in Europe

Vaughan Gething is set to make history as the first black Premier of Wales following his victory in the...

New ENEF II Fund to Propel Growth in Western Balkans

The European Bank for Reconstruction and Development (EBRD) has announced the introduction of the Enterprise Expansion Fund II (ENEF...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of...

Mariya Gabriel Endorses Horizon Europe’s Widening Measures to Bridge Research Gap Ahead of Bulgarian Premiership

Mariya Gabriel, set to ascend to Bulgaria's prime ministerial role in March, champions Horizon Europe's Widening measures as a...

The EBRD has achieved a historic record in Serbia in 2019 with €516 million of new financial commitments, lifting the Bank’s results to a new level, especially in the private sector and the green economy.

In total, the EBRD signed more than 20 new projects and registered the highest investment volume in the country since Serbia joined the EBRD in 2001.

“We are delighted with the results achieved”, says Zsuzsanna Hargitai, EBRD Director for the Western Balkans. “Our commercial financial institution partners continue playing a key role in channelling targeted and tailored EBRD funding to small businesses and retail customers. Private corporates, such as Tarkett, Karlovarske Mineralny Vody, Teraplast and United Group, have benefited from EBRD debt and equity financing for their expansion in Serbia. We take particular pride in leading financing for the first public-private partnership in the region for environmental infrastructure in Vinča, Belgrade, to be constructed in line with EU standards”.

Fostering the competitiveness of the private sector, supporting Serbia’s environmental infrastructure and supporting investments in energy efficiency and clean energy remain the Bank’s key priorities in the country.

To enhance the competitiveness of the private sector, the Bank channelled €226.2 million in credit lines to commercial banks for on-lending to local small and medium-sized enterprises (SMEs), while it channelled €5 million direct financings through WB EDIF and Enterprise Expansion Fund. SMEs were also given access to credit lines blended with incentives funded by the European Union, while 140 SMEs received advisory support for building export capacity, digitalisation, marketing, financial management or business skills development.
Sweden and Luxembourg continued to support women entrepreneurs with training and tailor-made advisory support, and Luxembourg additionally supported new Star Venture Programme designed to boost the growth of selected high potential start-ups. The EBRD also on-lent €40 million in credit lines to commercial banks for supporting mortgage financing in line with best business practices and standards.

The EBRD committed financing for the rehabilitation of the 40-year old Vinča landfill in Belgrade and the construction of new landfill and waste-to-energy facilities. The EBRD contributed a €72.25 million loan to this milestone project and mobilised €35 million provided by Erste Group Bank AG under the A/B loan structure, and €21 million in concessional finance funded by TaiwanICDF.

The EBRD further supported Serbia’s transport infrastructure with an additional €100 million loan to the state-owned passenger railway company Srbija Voz to buy up to 18 new trains. As well as investing in the new fleet, the EBRD also helped the company improve its corporate governance, expand and upgrade a railway depot in Zemun as well as improving its IT systems, energy management and ticket sales, thus contributing to overall modernisation of the national railway.

In the agriculture sector, the EBRD provided a €15 million loan to Serbia to finance the rehabilitation and construction of irrigation infrastructure in two regions, Negotin and Svilajnac. Serbia’s agricultural infrastructure, which has suffered from severe floods and droughts in recent years, will become more resilient to climate change. The EBRD and Food and Agriculture Organization of the United Nations will additionally assist Serbia to prepare a national irrigation strategy aimed both at increasing the competitiveness of the agricultural sector and adapting it to climate change.

Under its Green Economy Financing Facility (GEFF), which started in 2019 and is supported by the European Union, Austria, WBIF and Energy Community, to date the EBRD enabled over 600 households to improve their energy efficiency. Citizens benefited from loans coupled with incentive grants for investments in energy efficiency measures such as insulation, new windows or biomass boilers. In 2019, two local banks, Erste and UniCredit, offered GEFF loans to Serbian citizens. The Bank also extended €10 million under the Global Climate Fund (GCF) – GEFF programme to UniCredit Leasing for supporting SMEs in purchasing energy-efficient equipment.

Other green investments included a €7 million loan to Novi Sad’s public transport operator to buy new, low-emission buses and a €2.5 million loan to the municipality of Šabac for an upgrade of up to 40 multi-storey residential buildings. Both projects will help reduce CO2 emissions and lower energy consumption, thus reducing costs.

In 2019, the EBRD also launched its Renewable District Energy in the Western Balkans programme, supported by Austria, which aims to enable investments in renewable energy sources such as solar or geothermal for district heating systems. Feasibility studies with several cities are currently being finalised to identify investments for financing in 2020-21.
Additionally, Serbia’s two first large-scale windfarms in Čibuk 1 and Kovačica, which the EBRD has financed, were completed in 2019 and are now generating clean energy, increasing the share of renewable energy in the country.

With UK and Luxembourg donor support, good progress was also made in improving the corporate governance of Serbian state-owned enterprises Srbija Voz and EPS, the state-owned power utility, with the EBRD recognised as a leader in state-owned enterprise reform support.

Related Articles

New ENEF II Fund to Propel Growth in Western Balkans

The European Bank for Reconstruction and Development (EBRD) has announced the introduction of the Enterprise Expansion Fund II (ENEF II), aimed at fostering the...

European Parliament Passes Groundbreaking AI Law

The European Parliament has adopted the Artificial Intelligence (AI) Act, aiming to safeguard fundamental rights, democracy, the rule of law, and ecological sustainability in...

Mariya Gabriel Endorses Horizon Europe’s Widening Measures to Bridge Research Gap Ahead of Bulgarian Premiership

Mariya Gabriel, set to ascend to Bulgaria's prime ministerial role in March, champions Horizon Europe's Widening measures as a key strategy to address Europe's...

European Parliament Members Endorse Western Balkan Reform and Growth Instrument

Members of the European Parliament's committees on foreign affairs and budget have officially adopted a stance on the Western Balkan Reform and Growth Instrument,...

Minister Jovanović Earns Reformer of the Year for Leading Serbia’s Digital Overhaul

Mihailo Jovanović, Serbia's Minister of Information and Telecommunications, has been named Reformer of the Year by the National Alliance for Local Economic Development (NALED),...

31st Kopaonik Business Forum Kicks Off Amid Global Uncertainties

The prestigious Kopaonik Business Forum, now in its 31st year, commenced on the Serbian ski resort of Kopaonik, with a spotlight on "The New...

European Banking Titans Surpass €100 Billion Profit Milestone Amid Rising Interest Rates

For the first time in history, Europe's banking behemoths have collectively breached the €100 billion profit ceiling, fueled by a significant uptick in interest...

Western Balkans Eye EU Membership by 2028

At the esteemed Munich Security Conference, a cornerstone event in global security discourse, leaders from North Macedonia, Albania, and Montenegro have passionately renewed their...