The European Bank for Reconstruction and Development (EBRD) is supporting the post-pandemic recovery of the Serbian economy by securing financing for small and medium-sized enterprises (SMEs), in cooperation with local Eurobank Serbia.

The EBRD is extending a RSD2.9bn (€24.7mn) to Serbia for on-lending to local SMEs. The credit line will help expand lending to private businesses through working-capital lines and investment loans to SMEs, including those operating in economically less-developed regions of the country, the EBRD said in a statement published on its website.

Furthermore, the credit line will strengthen access to local currency loans for SMEs in Serbia, a country where euro loans represent more than 60% of the banking sector loan portfolio.

“We are pleased to continue our cooperation with Eurobank Serbia and to extend jointly this new credit line that will support the recovery and development of local businesses. Increasing the availability of our financing in the local currency dinar will substantially benefit local borrowers as they are no longer exposed to exchange rate vulnerabilities. This will also contribute to strengthening the confidence in the domestic financial system,” said Charlotte Ruhe, managing director Central and South Eastern Europe, at the EBRD.

The EBRD is a leading institutional investor in Serbia, having invested more than €6.7bn across 289 projects in the country to date.