The European Bank for Reconstruction and Development (EBRD) is lending €15 million to Banca Intesa, a member of international banking group Intesa Sanpaolo,under its flagship Youth in Business programme. The loan will boost on-lending to micro, small and medium-sized enterprises (MSMEs) that are owned or managed by entrepreneurs under the age of 35.

This is the second EBRD loan under its Youth in Business programme to Banca Intesa Belgrade, after an inaugural €15 million loan in 2022, indicating a growing need for this type of financing in Serbia.

The EBRD’s Youth in Business programme aims to empower entrepreneurs under the age of 35, supporting them with financial and non-financial products tailored to their needs, demonstrating that young businesspeople are a bankable segment. As well as gaining better access to finance, young entrepreneurs will benefit from consultancy projects, e-learning and training.

The programme is supported by the EU through its European Fund for Sustainable Development Plus (EFSD+) financial inclusion programme which introduces a variety of risk-sharing instruments to support businesses in more challenging markets. The EU is providing up to €1.5 million for first loss risk cover, which facilitates access to financing for young entrepreneurs.

In addition, financing for the programme in the form of technical cooperation funds has been provided by the EU, Sweden via the Swedish International Development Cooperation Agency; Italy via the Central European Initiative; and Luxembourg via the EBRD Small Business Impact Fund. These funds will support Banca Intesa Belgrade’s capacity building, advisory services and training for young people running MSMEs.

In the wider region, the EBRD’s Western Balkans Youth in Business programme expects to provide €100 million to local banks and microfinance institutions over the coming years.