EBRD Considers €30 Million Loan Package for Erste Bank Serbia to Support Green and Digital Initiatives
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Loading... - FIONA WALSH
- 04 Nov 2024
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The European Bank for Reconstruction and Development (EBRD) announced on Wednesday its consideration of a substantial loan package totaling €30 million (approximately $32 million) to Erste Bank Serbia. This funding aims to facilitate on-lending to local small- and medium-sized enterprises (SMEs) for projects focused on sustainability and digital transformation.
The proposed loan package consists of three distinct facilities:
- SME Go Green Programme: A senior unsecured loan of up to €15 million will be provided to Erste Bank Serbia in three equal tranches. This initiative is designed to support energy-efficient, resource-efficient, and renewable energy investments. The programme specifically targets the agribusiness sector, aiming to enhance the sustainability of supply chains and reduce environmental impacts. Additionally, it seeks to promote equitable access to climate finance for women-led SMEs, thereby fostering inclusivity in the green transition.
- Western Balkans GEFF III REpower Residential Programme: The EBRD is also considering a senior unsecured loan of up to 1.2 billion dinars (approximately €10 million) under this programme. This facility will enable financing for green investments in the residential and public sectors, further contributing to the region's sustainability goals.
- Go Digital in the Western Balkans Programme: A third loan facility of up to €5 million is earmarked to promote digitalisation within the private sector. This initiative aims to enhance innovation and competitiveness among SMEs by encouraging the adoption of digital and automation technologies.
The three loan facilities are scheduled for approval on December 4, marking a significant step in the EBRD's ongoing commitment to supporting sustainable development and digital transformation in the Western Balkans.
Erste Bank Serbia, a subsidiary of Austria's Erste Group, holds a market share of 6.3%, making it the eighth largest bank in Serbia in terms of assets among the 20 lenders operating in the country. The bank's involvement in these initiatives underscores its role in facilitating access to finance for local businesses, particularly in the context of the green and digital transitions.
The EBRD's proposed loan facilities to Erste Bank Serbia represent a strategic investment in the future of local SMEs, emphasizing the importance of sustainability and digitalisation in driving economic growth. By supporting these initiatives, the EBRD aims to foster a more resilient and environmentally conscious business landscape in Serbia, ultimately contributing to the broader goals of climate action and innovation in the region.
