€22 million EIB-Erste Bank initiative to support digital and green investments by Serbian businesses

• Erste Bank Serbia to channel €20 million EIB loan and €2 million EU grant to Serbian small and medium-sized companies as well as mid-caps.
• Financing to support digital, climate and sustainable agricultural projects.
• Operation is the first in Serbia under 2025 EIB development programme for Western Balkans.  

A range of Serbian businesses will be eligible for favourable financing as a result of a €22 million agreement between the European Investment Bank (EIB) and Erste Bank a.d. Novi Sad. The accord involves a €20 million EIB loan and a €2 million European Union grant that Erste Bank will channel to Serbian small and medium-sized enterprises (SMEs) and mid-caps for digital, green and sustainable agricultural projects.

The agreement marks an important milestone as the first operation in Serbia under an EIB programme called the “Innovation and Green Transformation Facility for the Western Balkans”.

“We are helping Serbian companies modernise and turn innovation and sustainability into competitive advantage,” said Director for Enlargement and Neighbourhood Richard Amor. “Supporting sustainable private-sector-led growth is also essential for strengthening the country’s economic resilience and integration into the EU market.”

The EIB financing for digital projects covers SME and mid-cap investments in innovative products and processes, research and artificial intelligence. The green financing is for company projects that tackle climate change through, for example, energy savings and cuts in greenhouse gas emissions. The climate component of the financing package is for projects that improve resource efficiency and promote sustainable agriculture, including livestock and crop production.

Channeled under the Western Balkans Investment Framework, the EU grant will enable companies that receive loans through this agreement to reduce the repayment sum by 10%. The grant component also includes EIB technical assistance to Erste Bank on helping companies prepare bankable projects and on strengthening collaboration with Serbia's innovation network, including support for startups at an early stage of development.

“Supporting entrepreneurs and companies in their transformation is a very important part of Erste Bank’s strategy,” said Erste Bank a.d. Novi Sad Chief Executive Officer Jasna Terzić. “This partnership with the EIB and the European Union allows us to provide favourable financing that will help Serbian businesses accelerate digitalisation, improve sustainability and strengthen their market position. We are particularly proud that this is the first financing facility of its kind available on the Serbian market, bringing innovative support to local businesses. By fostering investments in innovation, green technologies and sustainable agriculture, we are contributing not only to the growth of individual companies but also to the long-term competitiveness and resilience of the Serbian economy. We are proud to be part of an initiative that brings tangible benefits to businesses while supporting Serbia’s green and digital transition.”

The project aims to deepen the Western Balkans’ economic integration within the EU and support industrial decarbonisation and climate resilience.

"By bringing together EIB financing and EU grant support, we are helping Serbian businesses access favourable funding to invest, grow and become more competitive, while also supporting a greener and more resilient economy,” said Deputy Head of the European Union Delegation to Serbia Julian Vassallo. “This operation reflects the EU’s continued commitment to Serbia’s private sector and to bringing its economy closer to the EU Single Market."

The new financing agreement marks the seventh operation between the EIB and Erste Bank a.d. Novi Sad since 2009.