EBRD and EU lend up to €15 million to Erste Bank Serbia to support green investment

Loan under SME Go Green programme combined with EU-funded technical assistance and grant incentives

EBRD and EU lending up to €15 million to Erste Bank under SME Go Green programme
Funds will be lent on to small and medium-sized enterprises
Loan combined with EU-funded technical assistance and grant incentives to encourage green investment

The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), is providing a loan of up to €15 million to Erste Bank in Serbia to support green investments by small and medium-sized enterprises (SMEs). The loan is being extended under the SME Go Green programme, co-funded by the EU through the Western Balkans Investment Framework.

Erste Bank Serbia will lend the funds on to SMEs in the country that are looking to invest in energy- and resource-efficient green technologies with a view to making their operations more sustainable and competitive, in line with the EU’s green agenda.

While all of the funding will be used to support investment in green technologies, the credit line will have a particular focus on investment in agriculture and agribusiness, supporting the greening of agriculture and agribusiness value chains in the region. It will also support women-led SMEs, helping to make access to climate finance more equitable for women entrepreneurs in recognition of their key role as early adopters of green technologies and sustainable business practices.

On successful completion of their investment projects, SMEs will be eligible for an EU grant equal to 10 per cent of the loan amount, with a higher figure of 15 per cent for investments in renewable energy and the agribusiness value chain. In addition to such grant incentives, SMEs will also benefit from EU-funded technical assistance, helping them to prioritise their investments and structure them accordingly.

Aleksandra Vukosavljević, the EBRD’s Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “We are pleased to offer structured financing to Serbian small businesses to support them in the greening of their companies in cooperation with our longstanding partner Erste Bank. This programme aims to encourage businesses to invest in green technologies, which will make them not only more productive, but also more competitive in EU markets, by aligning them with EU climate and environmental standards.”

Jasna Terzić, President of the Executive Board of Erste Bank Serbia, said: “At Erste Bank, we believe that a greener future starts with supporting those who build it every day – our small businesses. Thanks to this partnership with the EBRD and the European Union, we will be able to help domestic companies invest in energy-efficient and sustainable technologies. It is particularly important to us that a significant portion of the funds will be directed towards agriculture and women-led businesses, where positive changes can have a strong and lasting impact. For us, this is not just financing, but investing in progress that is inclusive, responsible and beneficial for our economy, community and environment.”

The EBRD is a leading institutional investor in Serbia, having invested more than €10 billion through 376 projects to date, the majority of which have supported the private sector. The Bank’s focus in Serbia is on boosting private-sector competitiveness, the transition to green energy and sustainable infrastructure.