EBRD supports small businesses in Kosovo
- EBRD lends up to €5 million to Raiffeisen Leasing Kosovo for SME on-lending
- At least 70 per cent of the investments to be used for green projects
- Grant incentives up to 15 per cent of the loan amount funded by Denmark, as well as Luxembourg, Norway, Switzerland and the United States of America
The European Bank for Reconstruction and Development (EBRD) is boosting small and medium-sized enterprises (SMEs) in Kosovo by extending a loan to Raiffeisen Leasing Kosovo.
The Bank’s financing of up to €5 million under the SME Reboot Programme will enable Raiffeisen Leasing Kosovo to increase access to finance for small businesses, which constitute the backbone of Kosovo’s economy.
Specifically, it will support investments in better-performing green technologies and in improving working standards and processes.
These investments aim to make Kosovan SMEs compliant with European Union and international standards, boosting their competitiveness on the domestic market and abroad.
The programme also includes a technical cooperation package that will provide assistance with the implementation, marketing and monitoring of the programme. This package is supported by Denmark, as well as Switzerland through the Small Business Impact Fund (SBIF).
Local SMEs will also benefit from grant incentives worth up to 15 per cent of the loan amount to make their investments more affordable. The grants for the regional programme are funded by Luxembourg, Norway, Switzerland and the United States of America through the SBIF, as well as Denmark.
EBRD Head of Kosovo Sergiy Maslichenko said: “We are pleased to extend our long-standing partnership with Raiffeisen Leasing Kosovo. This programme is tailored to meeting the local economy’s needs, enhancing two crucial elements: small businesses and the green economy transition. By going beyond business as usual, we are propelling local firms towards a cleaner and more sustainable future.”
Gjon Gjonlleshaj, Executive Director of Raiffeisen Leasing Kosovo, said: “The funding facility provided by the EBRD contributes to our continued mutual success. Our clients are delighted to be able to avail of the leasing finance and incentive programme provided by the EBRD and its donors. The added-value to businesses, evident for many years, is augmented by our cooperation with the EBRD. We are, therefore, looking forward to further business opportunities in the future, as we are committed to supporting Kosovo’s businesses in their journey towards growth and development.”
The credit line is part of the EBRD’s SME Reboot Programme to support small firms’ recovery from recent macroeconomic challenges.
Raiffeisen Leasing Kosovo joins a programme that has a proven track record in the country in encouraging SMEs to go beyond business as usual and invest in modern and sustainable technologies.
Around 70 per cent of programme funding will be allocated to investments in energy-saving and green technologies, while the remainder will support investments in automation, increasing productivity, product quality and safety.
Established in 2008, Raiffeisen Leasing Kosovo is a non-bank financial institution that primarily provides lease financing to small businesses and private individuals. A long-standing EBRD client, it is a market leader with around 70 per cent market share.
The EBRD is a leading institutional investor in Kosovo, investing a total of €672 million through over 110 projects to date.
*Donors to the EBRD Small Business Impact Fund include Italy, Ireland, South Korea, Luxembourg, Norway, the United States of America, Switzerland, Sweden, Japan and the TaiwanBusiness-EBRD Technical Cooperation Fund.