EIB lends 110 mln euro to two Serbian banks

The loans will support projects by small and medium-sized enterprises (SMEs) and infrastructure schemes by local authorities. They are the initial tranches of a total of 190 million euro in credit lines already approved by the EIB to support the Serbian economy together with the two banking groups, the bank said in a statement.

Loans worth 30 million euro and 20 million euro will be managed by Banca Intesa Beograd and Intesa Leasing Beograd, respectively, as they constituting the first two tranches of a 80 million euro credit line. A 20 million euro loan was signed with the Serbian subsidiary of Paris-based Societe Generale, while a 40 million euro loan was signed with Sogelease Serbia, the leasing company wholly-owned by Societe Generale Bank Srbija, the EIB said.

"The operations signed with the two local banks will improve the access of Serbian SMEs and midcap companies to long-term financing provided on favourable terms, with positive effects on the job market and the social environment including youth employment, which is at the core of the Bank’s Economic Resilience Initiative for the Western Balkans and Southern Neighbourhood," Dario Scannapieco, the EIB Vice President responsible for the Western Balkans said. "I am really pleased with our cooperation with the Serbian authorities and Serbian financial institutions: these loans represent a continuation of the very successful relationship between the EIB and both Intesa Sanpaolo Group and Societe Generale subsidiaries."

The financing is provided under the EU Pre-Accession Facility which is aimed at assisting Serbia in its efforts to integrate into the European Union, the EIB said.

The EIB is the leading international financier in the Western Balkans and has been active in the region since 1977. Since 2006, the Bank has financed projects totalling EUR 6.4bn. In 2016, the EIB signed financing contracts amounting to EUR 427m in the region, while total disbursements stood at EUR 592m. In 2010, the EIB opened a Regional Representation Office based in Belgrade in order to facilitate the development of EIB activity in the region, while underlining the commitment of the European institutions to supporting the Candidate and Potential Candidate Countries of the region in their journey towards the European Union.

The EIB has signed 6.4 billion euro of loans with the countries of the Western Balkans since 2006. In 2016, the EIB signed financing contracts amounting to 427 million euro in the region, while total disbursements stood at 592 million euro.

($=0.8513 euro)