EBRD announces €110 million credit line for the Western Balkans

The European Bank for Reconstruction and Development (EBRD) announced on Thursday that it is intensifying efforts aimed at supporting the development of the private sector in the Western Balkans region through a new €110 million credit line aimed at enhancing the competitiveness of local companies by improving business operations and increasing product quality.

As part of this new line to support the private sector in the Western Balkans (WBPSSF), the EBRD will provide loans to local banks for further lending to the private sector. These loans will be used to finance projects in the area of energy sustainability and to support the strengthening of the competitiveness of small and medium-sized enterprises.

The allocated funds will also be used to finance investments in energy efficiency and renewable energy projects for companies and households, as well as investments by small and medium-sized enterprises necessary to meet EU health and safety standards, as well as environmental protection and product safety and quality standards.

The aim of this project is to increase the availability of financing for real economies in the Western Balkans region, which would enable local companies to improve the quality of their business operations and energy efficiency. This would contribute to strengthening their competitiveness and ability to penetrate and successfully compete in the European single market, claims the EBRD.

One of the goals is also to enhance the energy efficiency of households, which is particularly important in light of the continued rise in the prices of natural resources, which would ultimately result in an increase in living standards. The project is financed by EU grants totaling €22.5 million, which are part of the crisis response package under the pre-accession assistance instrument agreed in 2009, and which includes a comprehensive technical assistance program to help banks and other lending institutions identify and structure these urgently needed investments.  (H)