Banca Intesa, part of international banking group Intesa Sanpaolo, and German KfW Development Bank, as a representative of the German Federal Government, signed a 35 million euro loan agreement today for the support of green initiatives and rural development in the presence of representatives of the Serbian Ministry of Environmental Protection and the German Embassy in Serbia.

A 25 million euro tranche will be used to finance investments to improve the efficiency of using natural resources, the recycling of resources and cut harmful emissions in order to reduce the level of environmental pollution. Banca Intesa will on lend to micro, small and medium-sized enterprises (MSMEs), as well as to municipalities, which, upon successful completion of the project, have the opportunity to exercise the right to non-repayable grants in the amount of 10 percent of the loan amount.

The second tranche, worth EUR 10 million, is intended for a wide range of investments in strengthening the competitiveness of rural areas and will be aimed at MSMEs, registered agricultural households, cooperatives and social entrepreneurs.

“Owing to the cooperation with our long-term partner KfW, we continue to provide access to favorable sources of financing for our clients, while confirming the bank's strong commitment to ESG principles. Encouraging rational use of resources, reducing emissions of harmful gases and mitigating development inequalities is part of Banca Intesa's broader ESG strategy, which calls for contributing to solving current environmental and social challenges by achieving a positive impact on the environment and society, both directly and indirectly,” Banca Intesa Executive Board President Darko Popović said.

State Secretary at the Ministry of Environmental Protection Sandra Dokić, who attended the agreement signing ceremony, stressed that the Ministry of Environmental Protection has supported the project taking into consideration the key role of environmental policy creators in supporting the development of environmental protection in the Republic of Serbia. “The aim of the project is to encourage the transition of Serbia’s economic growth from consumption and pollution of resources and harmful gas emissions to green economy. This is the way to improve both economic and social development while at the same time protecting the environment and natural resources,” Dokić said.

Also attending the ceremony was Head of the German Development Cooperation in Serbia Christian Schiling, who said: “To overcome the challenges of climate change and reaching the Paris Agreements, it is inevitable that we all join forces and do not limit ourselves to a cooperation solely with public actors. Therefore, within our jointly agreed Climate Partnership between Serbia and Germany, we will work with banks, like Banca Intesa, to in particular support the local private sector. Together with Banca Intesa we will support MSMEs in achieving higher standards in environmental protection and prepare them for entering EU markets. Our intention is that the Green Transition will be economically sustainable and socially fair.”

Director of the KfW Belgrade Office Rüdiger Hartmann said: ”As our long-lasting partner, we couldn’t have found a better major promoter than Banca Intesa, responsible for the implementation our new climate program for MSME and municipalities. Having experience of more than 15 years in joint support to the public and private sector, and now adding newly established cooperation with the Ministry of Environmental Protection in the framework of the Program, we are certain that we will achieve the environmental and climate impact envisaged. With no less importance, we are also proud that together with Banca Intesa we will continue to support MSMEs and small farmers in rural areas in Serbia.“

Since they started cooperation in 2008, Banca Intesa and KfW have signed nine credit line agreements with a total value of EUR 186.5 million, not including the agreement signed today, providing support to the citizens and economy of Serbia.