The first impact finance loan for Serbian SMEs. This highly innovative EIB operation aims to aid employment, sustainable and inclusive development and economic resilience. The funds will be open to companies dedicated to improving their businesses' positive social impact
The European Investment Bank (EIB) and UniCredit Bank Srbija A.D. (UCBS) have signed the first EUR15 million tranche of an innovative EUR30 million impact finance loan to assist Serbian small, medium and mid-cap companies to enhance the social impact of the businesses in areas such as gender equality, youth employment and social inclusion.
The loan in the EU bank is being complemented by a EUR4 million grant provided underneath the EIB's Economic Resilience Initiative (ERI). The grant will reward firms that meet specific targets to foster women's employment and entrepreneurship, youth employment and professional development along with the social inclusion of underserved or vulnerable demographic groups (e.g. minorities, individuals with disabilities, refugees, etc.) who often face additional barriers to entry in the employment market. Under the scheme, some social impact goals is going to be agreed using the firms that borrow the EIB funds through UCBS and a financial reward is going to be distributed to people who meet such targets, encouraging them to include and support employees from more vulnerable groups and ensure their training and long-term retention.
This is the first EIB private sector loan under the ERI within the Western Balkans, adding to the overarching objectives of promoting sustainable growth and supporting economic resilience. The EIB will also provide technical support for that preparation and implementation from the projects, helping to attain the intended social impact objectives. To look at the video from the signature ceremony please follow this link: https://youtu.be/60evRadP3gw.
On this occasion, President of the EIB Werner Hoyer stated: “We are delighted to support the introduction of innovative financial mechanisms in Serbia to aid faster economic rise in the nation. This loan marks the beginning of a new way of lending to SMEs with far-reaching benefits for social development and the inclusion of people from the most vulnerable groups in the employment market. It awards those SMEs who wish to grow in a sustainable and inclusive way and allows much more individuals to take advantage of economic development. This can be a new chapter within our decades-long support for SMEs, economic and social growth, and also the regional and EU integration of Serbia, and it is a reaffirmation of our resolve for help Serbia develop faster.“
Jean Pierre Mustier, Ceo of UniCredit S.p.A., said: “To do well, we have to complete good. At UniCredit, all our actions are guided by clear value, such as the importance of actively supporting our communities. Thanks to our Social Impact Banking initiative we make investments which have an optimistic effect on society. The EIB agreement, signed today, allows us to further support the small and medium businesses that constitute foundation of the Serbian economy which will offer the country's future growth.”
This operation, concentrating on the private sector, will generate superior developmental impact than conventional operations. This is possible through the mixture of ERI funds, European Commission support and the EIB funds and knowledge of this sector. This deal reaffirms our commitment to the Western Balkans in addition to our leading financier role within Team Europe. It will be a blueprint for future operations led by our ambitions in the impact finance business.
Vice-President from the EIB, Dario Scannapieco, said: “The EIB is proud to introduce this new innovative loan to Serbia which supports companies provide job opportunities to more susceptible groups, for inclusion and sustainable development. Retaining jobs and liquidity is important to enhancing growth in the post COVID-19 phase and also the EIB continues to upscale its support to ensure Serbia recovers as quickly as possible, continuing its path towards full membership towards the Eu. This performance-based incentive loan is important for the EIB as it makes it possible to enhance socio-economic impact and reward the very best business practices within the private sector, supporting the modification Serbia can usually benefit from.“
CEO of UniCredit Bank Srbija A.D., Feza Tan, stated: “We are very proud that European Investment Bank has recognised all the efforts of UniCredit Bank in creating a fairer and inclusive society. Being the first bank in the Western Balkans to sign financing agreement under European Resilience Initiative carries by using it a great responsibility. You want to be considered a driver and facilitator of change in to improve our society. This cooperation will enable us to aid companies with strong social mission within their efforts to tackle both difficult to employ and vulnerable categories. In this way, together, we'll develop a more equitable and sustainable society.”
In the last Ten years alone (2009-2023), the EIB has invested EUR1.87 billion in to the private sector in Serbia, supporting over 11 000 companies and retaining over 320 000 jobs.
