The European Investment Bank (EIB) said on Monday that it had signed an agreement with UniCredit Bank Srbija A.D. (UCBS) to provide up to €50 million for the financing of small and medium-sized enterprises (SMEs) and Mid-Caps in Serbia to help them recover from the COVID-19 crisis.
A press release said that the loan will help companies to deal with the financial constraints caused by the pandemic in order to maintain liquidity and jobs.
“This is the fourth credit line provided so far by the EIB in support of Serbian companies under the Team Europe financial package for COVID-19 recovery in the Western Balkans. With the new loan signed today, the total EIB financing for COVID-19 recovery provided to Serbian SMEs since the start of the pandemic will reach €140 million,” the EIB’s press release said.
UCBS will on-lend the funds to SMEs and mid-caps in Serbia affected by the COVID-19 crisis with more favourable and affordable conditions. The companies will be able to use the EIB funds to finance their liquidity, working capital and medium to long-term investment needs, the press release specified.
“The EIB has a well-established relationship with UniCredit, which has implemented several EIB credit lines to date, totalling more than €150 million for financing SMEs and mid-caps in Serbia and Bosnia and Herzegovina. The latest cooperation, signed in 2020, is a social impact loan for SMEs, established for the first time in Serbia. This innovative type of financing is designed for companies that make a positive impact on their community by providing employment and professional development to people from vulnerable social groups,” the EIB press release adds.
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