April 16 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it is providing a 20 million euro ($23.9 million) loan to UniCredit Leasing Serbia to back local small and medium-sized enterprises (SMEs) in improving their competitiveness.
The loan will give SMEs in Serbia access to finance, enabling them to go beyond their day-to-day operations and invest in upgrades with a view to reaching EU standards, the EBRD said in a statement on Thursday.
SMEs can use the funds to upgrade technology, processes or services, particularly those related to product quality, health and safety and EU environmental requirements, the EBRD said.
"Access to well-structured financial and advisory support can encourage local firms to invest in boosting their competitiveness, and we have seen how this can help local firms grow into champions. This is why we remain united with our partners, the European Union and the Ministry of Economy of Serbia, in our aim to continue to improve access to finance for SMEs in Serbia," Zsuzsanna Hargitai, EBRD Regional Director, Western Balkans and Head of Serbia, said in the statement.
SMEs can also obtain technical assistance, including EBRD advisory support, and once they have successfully completed their investment, will be eligible for a cashback grant of 15% of the total loan amount, both of which will be funded by the European Union (EU).
"We are very pleased that half of the total loan amount will support investments in green technology and energy efficiency, which is in line with UniCredit's strategic commitment to sustainable value creation," Ana Milic, President of the Management of UniCredit Leasing Serbia, noted.
The investments will be channelled through the Western Balkans SME Competitiveness Support Programme, to which the EBRD provides loans and the EU contributes incentive payments and technical assistance. The goal is to help SMEs modernise their activities and take advantage of trade opportunities in the Western Balkans region and the wider European market.
($ = 0.83549 euro)