EUR10 million in credit lines to Intesa Leasing to enhance companies' competitiveness
- New EBRD line of credit of EUR10 million to Intesa Leasing
- SMEs can access new finance to meet their ambitions to become more competitive
- EU funds to identify most adequate equipment as well as for incentive payments
The European Bank for Reconstruction and Development (EBRD) and also the European Union (EU) are upgrading their support for small and medium-sized enterprises (SME) in Serbia. A brand new EUR10 million line of credit to Intesa Leasing will support these companies during and after the coronavirus pandemic.
It will help SMEs in Serbia to purchase upgrading their equipment and production ways to EU standards, in particular for product quality and safety, environmental protection, in addition to workers' safety and health. This support comes in a crucial time, as use of finance is limited and native businesses are particularly vulnerable in the present circumstances.
The loan is part of a wider EBRD/EU programme to enhance SME competitiveness over the Western Balkans. While the EBRD and it is financial partners help businesses to invest in more modern production processes, the EU provides funds to recognize the most appropriate equipment and procedures as well as for incentive payments for successfully finished projects. In Serbia the programme is implemented in cooperation using the Ministry of the Economy.
The EBRD and the EU through Team Europe support SMEs to mitigate the social and economic consequences resulting from the coronavirus pandemic.
Intesa Leasing is part of Intesa Sanpaolo Group and something from the major leasing operators in Serbia, with major activities within the vehicles, equipment and property sectors.
Zsuzsanna Hargitai, EBRD Director for that Western Balkans, said: “We are strongly dedicated to supporting businesses and also the economy in Serbia during these challenging times. Our new financial package will build more competitive companies, bring high quality products towards the local market and open up new cross-border trade opportunities for local SMEs. It is a result of our excellent cooperation with this institutional partners, like the EU, and financial partners on the ground.”
The Head from the EU Delegation to Serbia, Sem Fabrizi stated: “Access to invest in is usually one of many obstacles for growth and development of small businesses, and COVID-19 managed to get even more complicated. Europe and also the EBRD – as Team Europe – decided to join forces to support the economical recovery providing tailor-made help to Serbia's SMEs. A new EUR10 million line of credit continues to be launched to make Serbian businesses more resilient and more competitive in regional and global markets. This joint initiative provides a complete package: advisory services, very competitive loans in the EBRD, and on surface of the Eu donates to Serbian SMEs up to 15 percent of the total amount borrowed, covering investments that SMEs can make in industrial premises, equipment, software, improvement of management systems and general upgrading.”
Goran Knezevi'c, Minister of the Economy of Serbia, noted: “On the proposal of the Secretary of state for Economy, europe has approved an additional EUR10 million in the Pre-accession (IPA) funds for that SME Competitiveness Support Programme in Serbia, which is already being implemented in the region. We are pleased that a new lender is accessing the Programme, which will encourage entrepreneurs to carry on investing in modern equipment that is consistent with EU standards and thus become more competitive. This support will mean more finance for small and medium enterprises, that will bring about a better standard of living, that is our main task.”
Darko Popovi'c, President of the Management Board of Intesa Leasing in Serbia, stated: “By signing this fourth line of credit, we continue our successful cooperation using the EBRD, especially in this challenging period for that SME sector, the most subjected to the crisis brought on by the coronavirus pandemic. I'm believing that with this particular credit line of EUR10 million, we will offer small and medium-sized enterprises easier access to financial resources for that purchase of construction, agricultural and production equipment and commercial vehicles in order to enhance their competitiveness. Intesa Leasing and EBRD have supported the economy with EUR55 million through three lines of credit already.”
The EBRD is really a leading institutional investor in Serbia. The financial institution has invested a lot more than EUR6 billion across 267 projects in the country up to now. The EBRD is concentrating on support for private-sector development, improvement of public utility services and on the general transition towards an environmentally friendly economy.
