Companies in Serbia now have access to a EUR 20 million credit line for digitalization, the green transition, and sustainable agriculture.
An EUR 22 million agreement between the European Investment Bank (EIB) and Erste Bank a.d. Novi Sad involves an EUR 20 million EIB loan and an EUR 2 million European Union grant.
Erste Bank will channel funds to Serbian small and medium-sized enterprises (SMEs) and mid-caps for digital, green and sustainable agricultural projects, according to the banks.
The EIB financing covers investments in artificial intelligence
The agreement marks an important milestone as the first operation in Serbia under an EIB programme called the “Innovation and Green Transformation Facility for the Western Balkans”.
The EIB financing for digital projects covers SME and mid-cap investments in innovative products and processes, research and artificial intelligence.
The green financing is for company projects that tackle climate change through, for example, energy savings and cuts in greenhouse gas emissions.
The EU grant will enable companies to reduce the repayment sum
The climate component of the financing package is for projects that improve resource efficiency and promote sustainable agriculture, including livestock and crop production.
According to the update, channeled under the Western Balkans Investment Framework (WBIF), the EU grant will enable companies that receive loans through this agreement to reduce the repayment sum by 10%.
The grant component also includes EIB technical assistance to Erste Bank on helping companies prepare bankable projects and on strengthening collaboration with Serbia’s innovation network, including support for startups at an early stage of development.
Amor: We are helping Serbian companies modernise
“We are helping Serbian companies modernise and turn innovation and sustainability into competitive advantage,” said Director for Enlargement and Neighbourhood Richard Amor. “Supporting sustainable private-sector-led growth is also essential for strengthening the country’s economic resilience and integration into the EU market.”
Erste Bank a.d. Novi Sad Chief Executive Officer Jasna Terzić stressed that the partnership with the EIB and the EU allows the bank to provide favourable financing that will help Serbian businesses accelerate digitalisation, improve sustainability and strengthen their market position.
Vassallo: Favourable funding to invest, grow and become more competitive
“By bringing together EIB financing and EU grant support, we are helping Serbian businesses access favourable funding to invest, grow and become more competitive, while also supporting a greener and more resilient economy,” said Deputy Head of the European Union Delegation to Serbia Julian Vassallo.
The new financing agreement marks the seventh operation between the EIB and Erste Bank a.d. Novi Sad since 2009.
