The European Investment Bank (EIB) has launched a programme for 2009 in Serbia aimed at combating the financial crisis and bringing the country closer to the European Union, a statement on the European Commission website on May 11 2009 said.

A first loan of 250 million euro for small and medium-sized enterprises (SMEs) and priority projects in the country, via the National Bank of Serbia, was signed in Belgrade on May 11.

This is the first in a series of operations that are expected to see the EIB support Serbia’s real economy in 2009-2010 with loans worth more than 1.4 billion euro aimed to support the recovery of the Serbian economy and pave the way towards European integration.
At the same time, the EIB and the Republic of Serbia signed a new Framework Agreement aimed at laying down the EIB activity in Serbia.

The EIB was represented by Dario Scannapieco, Vice-President with responsibility for financing operations in Italy, Malta and the Western Balkans; Serbia by deputy prime minister and minister of economy Mladjan Dinkic, deputy prime minister and minister of technological development Bozidar Djelic, finance minister Diana Dragutinovic; and the National Bank of Serbia by its vice governor, Ana Gligorijevic.

The 250 million euro loan will be disbursed via the National Bank of Serbia and will be on-lent by Serbian commercial banks.

During the current financial downturn, the amounts made available by the EIB will help to fund and support projects by SMEs and local authorities as well investments in the following sectors: industry, infrastructure, energy, environmental protection, knowledge economy, health, education, and services. EIB loans are available to all financial institutions in Serbia. In order to accelerate support to the SME sector, EIB loans may cover up to 100 per cent of the cost of each project.

"The EIB has been active in Serbia for many years; however, with the agreements signed today, co-operation between the Bank of European integration and the Serbian government has taken a huge step forward," EIB Vice-President Scannapieco said, according to the statement.

"Our commitment in this country throughout 2009 and in the years to come will fund investments and thus the development of businesses and local authorities as well as the completion of key infrastructure that will connect Serbia with the rest of Europe. EIB’s key contribution will therefore help Serbia to combat the recession and make a swifter recovery, thereby adding greater weight each day to that country’s plans of nurturing closer ties with the European Union".

Overall, Serbia’s projects currently being appraised by the EIB exceed 1.4 billion euro. Since the EIB finances up to 50 per cent of the total project cost, over the next few years investments totalling at least 2.8 billion euro could be made thanks to EIB support, the statement said. This corresponds to about three per cent of Serbia’s entire GDP.

The projects concern all sectors of the economy from the financial sector, motorways and rails (Corridor X) to education, energy, research and development and local infrastructure.