EIB Helps the Recovery of Economy
A loan of up to 50 million euros to finance small and medium-sized enterprises and companies with a medium market capitalisation will help a more efficient recovery from the consequences of the COVID-19 pandemic.
The European Investment Bank (EIB) and UniCredit Bank of Serbia AD (UCBS) have signed an agreement on that financial arrangement. The loan will help companies overcome the financial difficulties in business caused by the pandemic, maintain liquidity and jobs.
This is the fourth credit line provided so far by the EIB in support of Serbian companies under the Team Europe financial package for COVID-19 recovery in the Western Balkans. With the new loan signed today, the total EIB financing for COVID-19 recovery provided to Serbian SMEs since the start of the pandemic will reach €140 million.
UCBS will on-lend the funds to SMEs and mid-caps in Serbia affected by the COVID-19 crisis with more favourable and affordable conditions. The companies will be able to use the EIB funds to finance their liquidity, working capital and medium to long-term investment needs.
EIB Vice-President Lilyana Pavlova, who responsible for the Bank’s activities in Serbia, said: “The EIB continues to support Serbia’s growth and development with this significant investment signed today. We are dedicated to creating the conditions needed for a faster COVID-19 recovery and the transition of Serbian economy towards a more resilient, green, sustainable model, able to compete successfully on the global markets. We are glad to have partners like UniCredit Bank that are able to extend our financial support directly to companies in Serbia, thus saving jobs and incomes for thousands of people.”
Mateja Norčič Štamcar, chargee d’affaires of the EU Delegation to Serbia said: “SMEs are the backbone of the economy and this is why we finance this area both in the form of grants but also through credits and credit guarantees. We are gladly partnering with the banking sector in this regard. All the EU’s efforts to support innovative and technology-oriented SMEs as well as other sectors these businesses work in will in the end serve the modernisation of Serbia and boost the economy, in particular to help businesses affected by the COVID crisis.”
Teodora Petkova, Head of Eastern Europe at UniCredit stated: “We continue to be committed to providing ongoing support for the development of local businesses and economies through these initiatives in order to accelerate the COVID-19 recovery. This represents another concrete step towards ensuring cash flow continuity, especially for SMEs, which represent one of key pillars of the economies of the Western Balkans, allowing them to finance working capital and investment programmes. At UniCredit, we work closely with our subsidiaries in all countries to make decisive and tangible actions in being part of the solution, ensuring continuity for both production and the supply chain in the economies of Eastern Europe.”
Similar engagement worth 40 million euros was signed between EIB and Banca Intesa
Increased access to finance for SMEs in the Western Balkans
The EIB has a well-established relationship with UniCredit, which has implemented several EIB credit lines to date, totalling more than €150 million for financing SMEs and mid-caps in Serbia and Bosnia and Herzegovina. The latest cooperation, signed in 2020, is a social impact loan for SMEs, established for the first time in Serbia. This innovative type of financing is designed for companies that make a positive impact on their community by providing employment and professional development to people from vulnerable social groups.