The European Bank for Reconstruction and Development (EBRD) is providing a €20mn loan to UniCredit Leasing Serbia to support small and medium sized enterprises (SME's) that want to invest to boost their competitiveness. More than half of the total loan amount will finance investments in green technology and energy efficiency.

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. 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 development bank added on April 15 on its website.

The loan initiative will be implemented in cooperation with the Ministry of Economy of Serbia. At the ministry’s suggestion, the European Union has approved an additional €10mn in Instrument for Pre-Accession Assistance (IPA) funding for the EBRD's SME Competitiveness Programme in the country.

"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,” said Zsuzsanna Hargitai, EBRD regional director, Western Balkans and head of Serbia.