EUROBANK’S SUPPORT TO ENTREPRENEURS AND MICRO-ENTERPRISES
7 October 2021.
Eurobank and the European Fund for Southeast Europe inked a bilateral agreement on a credit line in the amount of 2.3 billion dinars for support to entrepreneurs and micro-enterprises. The first tranche, worth a half of the new credit line amount, will be issued as early as this month, whereas the second one is scheduled for May 2022.
‘The role of entrepreneurs and micro-enterprises in the domestic market is of exceptional significance for economic development, and access to the funds from the new credit line will enable them to additionally improve their business operations. The credit line will be allocated for financing permanent working capital and short-term investments in this segment. It is particularly important for facilitating further dinarisation of the micro loans market, thus contributing to stronger confidence in the domestic financial market,’ said Dušan Mihailović, a member of Eurobank’s Executive Board.
EFSE Board Chairperson Klaus Müller said: “Access to finance remains a key priority during and after the COVID-19 crisis. By providing this loan in local currency, entrepreneurs can receive financing in the same currency in which they make their income, protecting them from FX risk. As a bank that has had a record lending year in its MSE portfolio in 2020, Eurobank is primed to continue supporting MSEs and promote sustainable economic growth across Serbia and we are pleased to stand at their side.”
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households.
Since its establishment in Serbia, Eurobank has been supporting operations in the segment of entrepreneurs and micro-enterprises. In the last 10 years, Eurobank has placed more than 1.4 billion euros in this segment of Serbia’s business sector.