The European Investment Bank Group (EIB) said on February 2 it increased its financing in the Western Balkans by 50% in 2020 compared to a year earlier, investing €873mn in the region.

The financing was provided to help the recovery from COVID-19 under the European Union’s Team Europe initiative for the most affected sectors.

"In line with the EU’s focus on connectivity, the majority of the investment, €531mn was allocated to constructing and modernising transport infrastructure in the region," the EIB said in the statement.

Additionally a €12mn grant was provided under the EU Western Balkans Investment Framework (WBIF) for Corridor Vc in Bosnia & Herzegovina.

The EIB also provided €65mn investment for digitalising over 1,500 schools across Serbia and €11mn for wastewater infrastructure in Gjilan/Gnjilane municipality in Kosovo.

Small and medium-sized enterprises (SMEs) received significant support from the EIB Group last year with a €320mn investment for the banking sector to support small businesses.

The EIB has also expanded its support for the preparation and implementation of investment projects by providing technical assistance worth €17mn under the Economic Resilience Initiative and the WBIF.

"The EIB is playing a leading role in Team Europe’s response to the COVID crisis, committing €1.7bn of the €3.3bn total announced at the EU-Western Balkans Zagreb Summit in May 2020," the statement said.

To date, the EIB has mobilised over €1bn to accelerate the recovery from COVID-19 in the Western Balkans by channeling immediate assistance for the healthcare and private sector, especially small companies, the hardest hit by the pandemic.

In 2021, the EIB plans to deliver more support for climate action, the recovery of SMEs, connectivity, the digital transformation and projects encouraging inclusive employment for the Western Balkans.

"The EIB Group looks forward to working with all of its partners on implementing this major plan that aims to mobilise up to €9bn for inclusive growth, sustainable transport, the digital and green transformation and the creation of a common regional market, with €20bn in investment also expected to be leveraged by the Western Balkan Guarantee Facility," the lender announced.