May 26 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) has provided a 40 million euro ($43.9 million) loan to Serbia's Eurobank Beograd, a subsidiary of Greece's Eurobank Ergasias, for on-lending to small and medium-sized enterprises (SMEs), it said on Tuesday.
The financing will support local small businesses in Serbia amid the coronavirus pandemic and will help strengthen the resilience of the country's real economy and financial sector, the EBRD said in a statement.
Increased financing available via Eurobank can help bridge the financing gap and keep the economy's wheels turning as many companies in Serbia are experiencing a decrease in activity, turnover and profitability, which is leading to payment delays and liquidity issues, the EBRD said.
The financing is part of the EBRD's efforts to help countries in its regions to combat the impact of the coronavirus and support their recovery. The EBRD stands ready to provide support worth 21 billion euro over the period 2020-21, including over 3 billion euro in the Western Balkans. The support includes a Resilience Framework for existing clients, offering short-term liquidity, working capital and restructuring of exposure. The EBRD is also providing trade finance and an emergency support programme for providers of vital infrastructure. In addition, the Bank is ramping up its local currency, capital markets and equity offers.
The EBRD has invested more than 5.8 billion euro across 260 projects in Serbia to date, where it is supporting private sector development and the transition towards a sustainable, green economy.
($ = 0.9116 euro)
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