The European Investment Bank (EIB) and Erste Bank a.d. Novi Sad have entered into a significant financing agreement worth 22 million euros aimed at bolstering small and medium-sized enterprises (SMEs) in Serbia. This agreement, which includes a 20 million euro loan from the EIB and 2 million euros in grants from the European Union, is designed to support projects in digitalization, green transition, and sustainable agriculture. As the first of its kind in Serbia under the EIB’s ‘Innovation and Green Transformation Fund for the Western Balkans’ program, the initiative is intended to help Serbian companies modernize and leverage innovation and sustainability as competitive advantages.
Richard Amor, Director of EIB operations in EU enlargement and neighborhood countries, emphasized the importance of supporting sustainable growth led by the private sector to enhance Serbia’s economic resilience and integration into the EU market. The financing will support digital projects involving innovative products and processes, research, and artificial intelligence. Additionally, green financing will be directed towards projects that contribute to combating climate change, such as energy savings and reducing greenhouse gas emissions. The climate component of the financial package will back projects in resource-efficient use and sustainable agriculture, including livestock and crop farming.
The EU grants, provided through the Western Balkans Investment Framework, will enable companies receiving loans under this agreement to reduce their repayment amounts by 10%. This grant component also includes technical assistance for Erste Bank to support companies in preparing financially sustainable projects and strengthening Serbia’s innovation ecosystem, including support for startup companies.
Jasna Terzić, Chairwoman of the Executive Board of Erste Bank a.d. Novi Sad, stated that supporting entrepreneurs and companies in their transformation is a crucial part of Erste Bank’s strategy. The partnership with the EIB and the EU allows them to offer favorable financing to Serbian companies to accelerate digitalization, improve sustainability, and strengthen their market position. Terzić highlighted the pride in being part of an initiative that provides innovative support to local businesses, fostering investments in innovations, green technologies, and sustainable agriculture, which contributes not only to company growth but also to the long-term competitiveness and resilience of the Serbian economy.
Julian Vassallo, Deputy Head of the EU Delegation in Serbia, noted that this operation confirms the EU’s ongoing commitment to the development of Serbia’s private sector and its economic alignment with the EU Single Market. The new financing agreement represents the seventh financial operation between the EIB and Erste Bank since 2009, underscoring a long-standing partnership aimed at fostering economic growth and transformation in Serbia.
While the agreement marks a pivotal step in supporting Serbian SMEs, the specific criteria for qualifying for this funding were not detailed, which could impact accessibility. Additionally, there are uncertainties regarding the actual impact of the funding on the targeted sectors and the overall economy. However, the initiative is expected to deepen the economic integration of the Western Balkans with the European Union and support the decarbonization of industry and resilience to climate change.
