18.04.2024.

EU guarantees to unlock €37 million for small businesses in Kosovo

Launched in 2022, the European Union-funded WB EDIF Guarantee for SME Resilience Initiative will increase access to finance for small and medium enterprises (SMEs) and their ability to cope with challenging economic circumstances.
Available under affordable lending conditions, the financing made possible by the guarantee will contribute to business expansion, employment and economic growth in the region.
In Kosovo*, EIF guarantees have unlocked around €190 million in total to date for around 3 000 small businesses, which has helped sustain 31 000 jobs.

The European Investment Fund (EIF), part of the EIB Group, has signed portfolio guarantee agreements with 11 banks and financial intermediaries in the Western Balkans economies. Funded under the European Union’s WB EDIF (Western Balkans Enterprise Development and Innovation Facility) Guarantee for SME Resilience Initiative, these agreements will enable local banks and financial institutions to build a portfolio of SME loans for an aggregate amount of well above €750 million, along with those yet to signed in the first half of 2024.

These financial resources are intended to increase access to finance among small businesses and improve their resilience to ongoing economic distress, while creating conditions for business expansion, employment and innovation. In Kosovo, this facility is expected to deploy a total of €37 million of worth loans available at favourable lending conditions to some 690 small businesses, while sustaining around 9 500 jobs.

EIF Chief Executive Marjut Falkstedt said: “By supporting small businesses in the Western Balkans, especially in the most underserved and fragile segments, these extensive financial resources will improve these businesses’ capacity to innovate and grow, while at the same time contributing to further integration within the EU economy. By doing so, these substantial funds will provide additional impetus for the development of robust and competitive regional economies, as well as their advancement within the global value chains.”

In Kosovo, EIF guarantees have unlocked around €190 million in total to date for around 3 000 small businesses, which has helped sustain 31 000 jobs.

EU Ambassador in Kosovo Tomáš Szunyog added: “Thanks to our joint efforts, Kosovo’s small and medium enterprises will be able to increase their funding opportunities and access loans with favourable conditions. This EU-funded initiative will help such enterprises across the Western Balkans region to better respond to economic challenges and to grow.”