The European Investment Bank (EIB (HM:EIB)) has made significant strides in supporting small and medium-sized enterprises (SMEs) in the Western Balkans, with its intermediary lending programme driving significant economic growth and job creation in the region. Since the programme began in 2008, more than 28,400 SMEs have received financial support, resulting in impressive results for the local economy.
A recent study released by the EIB last night highlights the strong impact of these loans on job growth and increased investment in the Western Balkan SME sector from 2009-2023. Enterprises in Serbia, Bosnia and Herzegovina, Montenegro and North Macedonia that received EIB financing created an average of 15 additional jobs per million euros of loans while total assets increased by 20% and fixed assets increased significantly by 35%.
Key impacts from the EIB lending initiative include:
– Increase of 15% jobs among supported SMEs, equivalent to around 15 new jobs for every 1 million euros (1 euro = 1.0927 dollars) borrowed.
– Total assets increased by 20% and a significant growth of 35% in fixed assets among the companies benefiting from the loans.
The EIB’s efforts have been particularly effective in promoting financial inclusion and sustainable economic development. By targeting companies with limited access to traditional financial systems, the bank has played a key role in leveling the playing field for businesses in a region that has historically faced economic challenges. This is evidenced by the fact that many small and medium-sized enterprises are accessing bank financing for the first time, as EIB Chief Economist Debora Revoltella highlighted.
This report further reinforces the EIB’s commitment to providing support to SMEs in regions where access to traditional forms of finance is limited or non-existent. The continued success of this programme is expected to make a significant contribution to sustainable economic development and job creation in the Western Balkans.
Source: Investing
