More favourable loans for Serbian enterprises thanks to IPA-funded EUR20 million loan guarantee facility

As of mid-2018, small and medium sized enterprises will be given an opportunity to apply for considerably more favourable investment loans with commercial banks thanks to the project EU for Serbia – Financing for SMEs. Launched by the Ministry of Economy, the project is funded by the EU from its pre-accession funds (IPA) with EUR20 million aimed at offering loan guarantees.

A recently launched call for proposals for banks was presented today in a meeting with representatives of commercial banks operating in Serbia. Once the banks are selected, the project will allow micro, small and medium sized enterprises (SMEs) to apply for loans.

“The project is worth EUR20 million, and our goal is to secure favourable loans that will allow SMEs to trigger investments of over EUR100 million. The priority of the Ministry of Economy is to secure more favourable funding for business development for SMEs and thus encourage their growth. We thank the EU for agreeing to endorse the initiative developed by the Ministry of Economy,” said Assistant Minister of Economy Katarina Obradovic Jovanovic.

“One of the biggest challenges Serbian enterprises face is limited access to funding sources. We are therefore proud to have the opportunity to fund loan guarantees in Serbia for the first time. They are expected to secure not only the much needed financial assistance for the economy, but also to make the sources of financing more favourable and accessible, particularly for innovative and micro enterprises and start-ups. We are certain that this action will strengthen Serbian economy and boost its competitiveness,“ said Steffen Hudolin, Head of Operations at the EU Delegation to Serbia.

The project EU for Serbia – Financing for SMEs is implemented by the European Investment Fund (EIF) as part of the Western Balkans Enterprise Development & Innovation Facility (EDIF). As part of the European Investment Bank Group, the EIF specialises in providing support for micro, small and medium sized enterprises in Europe by facilitating their access to funding.