EIB provides EUR 200 million to Serbian Development Fund to support SMEs affected by COVID
The European Investment Bank (EIB), the bank of the European Union, will provide a loan of 200 million euros to the Development Fund of the Republic of Serbia for the faster recovery of small and medium-sized enterprises (SMEs) and average Covid-19[FEMININEIls’agitdelasixiÃ¨meopÃ©rationdanslepaysmiseenÅuvreparlaBEIdanslecadredupaquetfinancierTeamEuropepourlesBalkansoccidentauxportantlesoutientotaldelaBEIpouraccÃ©lÃ©rerlareprisedelaSerbieaprÃ¨sleCOVID-19Ã 380millionsd’eurosLeprÃªtaccÃ©lÃ©reralareprisedusecteurprivÃ©stimuleral’activitÃ©Ã©conomiqueetcontribueraÃ protÃ©gerplusde47000emploistoutencrÃ©ant5500nouveauxemploispourlesSerbes[FEMININEIls’agitdelasixiÃ¨meopÃ©rationdanslepaysmiseenÅuvreparlaBEIdanslecadredupaquetfinancierTeamEuropepourlesBalkansoccidentauxportantlesoutientotaldelaBEIpouraccÃ©lÃ©rerlareprisedelaSerbieaprÃ¨sleCOVID-19Ã 380millionsd’eurosLeprÃªtaccÃ©lÃ©reralareprisedusecteurprivÃ©stimuleral’activitÃ©Ã©conomiqueetcontribueraÃ protÃ©gerplusde47000emploistoutencrÃ©ant5500nouveauxemploispourlesSerbes
EIB funds will be made available to small Serbian businesses for working capital needs and to finance longer term investments under more flexible and favorable terms. They are designed to maximize impact and offer different disbursement options, allowing SMEs in urgent need of liquidity to access funds faster.
EIB Vice-President Lilyana Pavlova, responsible for lending operations in Serbia, said: âAs a long-standing partner of Serbia and a member of Team Europe, the EIB continues to help the country overcome difficulties. most immediate consequences linked to COVID, strengthen its economy and progress in European integration. Supporting the private sector is an important part of this process and our priority right now is to help jumpstart production while protecting supply chains and jobs. Our operation now channels 200 million euros to the worst affected by SMEs and mid-sized companies in Serbia. This much-needed financial assistance enables business continuity and increases the resilience of the Serbian economy, paving the way for a faster post-COVID recovery and greater competitiveness.
Sinisa Mali, Minister of Finance, said: âSince the start of the pandemic, the government of the Republic of Serbia has continued to provide continuous support to the economy and citizens of Serbia, mitigating the negative consequences of the coronavirus . We have adopted and implemented two important financial packages for the economy and our citizens, and the third program is underway. All these arrangements amount to 8 billion euros in total, or 17.4% of gross domestic product. With these relief measures, we have succeeded in protecting the economy, helping businesses continue to operate and preserving jobs. The three programs also include support for small and medium-sized enterprises, in the form of financial assistance with the payment of the minimum wage, the authorization for employers to defer the payment of taxes and contributions, and the provision of favorable financing. with two guarantee systems The importance of small and medium-sized enterprises to the whole economy is invaluable, and we are happy to be able to continue to strengthen this sector together. “
Andjelka Atanaskovic, Minister of Economy, said: âLike the global economy, Serbia faces risks and uncertainties due to the epidemic caused by COVID-19. The last year has been very difficult, and in order to mitigate the negative consequences on the SME sector and preserve the stability of the financial and economic system, the government of Serbia has succeeded in helping companies to maintain their activities. The intention of the Government of Serbia is to continue this trend and provide further support to economic entities to raise working capital and maintain current liquidity so that they can meet their obligations to their business partners, employees and the ‘State. Given the huge corporate interest in this government support, we needed additional funds, and they came in the form of EIB credit support. Through this line of credit, the Government of the Republic of Serbia will also help business entities to invest at this difficult time. The investment program nt “establishes a new line of credit providing credit funds to business entities on favorable terms for the implementation of new investments, which will accelerate the recovery and growth of economic activity in the Republic of Serbia despite the difficult economic conditions we will face immediately after the pandemic.The intention of this project, with the help of the EIB, is to contribute to the recovery and development of SMEs by supporting new investments, preserving the employment, by encouraging economic development according to the principles of sustainable development and by improving competitiveness by investing in digitization and the application of new technologies. “
Mateja NorÄiÄ Å tamcar, ChargÃ© d’affaires at the EU Delegation to Serbia, said: âThe European Union has been with Serbia since the start of the pandemic, in the immediate emergency phase and supporting the vaccination campaign. It is a natural choice for the European Union to continue supporting the economy as well. We have devoted part of our grants to this objective. The financial assets offered by the EIB are an integral part of our strategy to strengthen SMEs. They are the backbone of the economy. “
Team Europe provides vital economic support to the Serbian economy
The EIB loan enables the government of Serbia to provide vital economic support to the private sector. These funds are part of the Team Europe support program for the Western Balkans, which includes the â¬ 1.7 billion COVID-19 recovery program introduced by the EIB in May 2020. This EU support also involves deployment ongoing two additional programs, which will provide up to â¬ 900 million in new funding in the region. From 2009 to date, the EIB has invested over â¬ 2.2 billion in almost all key sectors of the Serbian economy, helping to maintain over 320,000 jobs.