The Investment and Development Fund of Montenegro (IDF) has secured EUR 50 million to support green recovery and decarbonization of the economy. The loan will help small businesses implement energy-saving measures and the recovery of the economy from COVID-19.
The European Investment Bank (EIB) will lend EUR 50 million to the Investment and Development Fund of Montenegro. The funds will be available for the companies in the sectors of infrastructure, industry, transport, innovation, agriculture and tourism.
Small and medium-sized enterprises (SMEs) will have an opportunity to address their liquidity issues, support jobs, increase competitiveness and improve energy efficiency practices, the bank said.
The loan will also help to create youth employment opportunities
It is the second loan signed with the IDF since the start of the pandemic, following a EUR 50 million investment from September 2020 for supporting COVID-19 recovery of over 150 Montenegrin small and medium enterprises.
The latest loan will also help to create youth employment opportunities through special loan conditions provided under the European Youth Employment and Training for the Western Balkans (EYET) initiative.
Agence Française de Développement is also co-financing the IDF and providing technical assistance to help the fund develop a strategy, guidelines and resources for climate action investments, EIB said.
IDF is the first signatory of loan for climate action in the Western Balkans
Irena Radović, Executive Director of the Investment and Development Fund of Montenegro, said the economic crisis brought on by the COVID-19 pandemic continues to be a source of uncertainty but that it also presents an opportunity for Montenegro to ensure a resilient, inclusive and green post-pandemic recovery.
IDF is proud and passionate about taking the lead in the green transition and economic transformation in close cooperation with the EIB and being the first signatory of such an operation for climate action in the Western Balkans, she said.
EIB Vice-President Lilyana Pavlova, who is responsible for operations in Montenegro, said the loan addresses the two most important global economic and social issues of our time – COVID-19 recovery and climate action.
The signing of the loan agreement was also attended by Milojko Spajić, Minister of Finance and Social Welfare of Montenegro.