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25 million euros for micro and small enterprises

The European Fund for Southeast Europe (EFSE) and Banca Intesa a.d. Beograd have signed a new loan agreement of EUR 25 million to boost the availability of financing to micro and small enterprises (MSEs), including rural entrepreneurs and small agriculture producers in Serbia.

The proceeds of the EFSE loan will be used to finance the investments and working capital needs of MSEs operating in Serbia with longer term loans of up to EUR 100,000. The Bank will use a significant portion of the loan for MSEs in rural areas and individual agriculture producers, mobilising capital for a segment of the Serbia’s economy still significantly in need for financing.

EFSE is one of the world’s largest development finance investment funds. It was initiated in 2005 by the KfW Entwicklungsbank (The German Development Bank) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. This is the second EFSE loan to the Bank to refinance MSE loans, following a EUR 25 million loan in March 2010.