The European Investment Fund (EIF) signed portfolio guarantee agreements with 11 banks and financial intermediaries in the Western Balkans, Europa EU reports.
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 totalling over EUR 750 million, as well as those still to be signed in the first half of 2024.
With the help of financial resources, small businesses will have increased access to finance and increase their resilience to current economic difficulties, and will be provided with conditions for business expansion, employment and innovation. In Kosovo, the Facility is expected to generate around 9,500 jobs and provide a total of €37 million in soft loans to around 690 small businesses.
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 leveraged a total of around €190 million for 3,000 small businesses, helping to safeguard 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.”
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its mission is to support European micro, small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture capital and growth capital, guarantees and microfinance instruments targeted specifically at this market segment. In this role, the EIF contributes to the EU’s objectives of supporting innovation, research and development, entrepreneurship, growth and employment.
