EIB supports faster post-COVID recovery of SMEs and mid-caps in Montenegro

Montenegrin small and medium-sized enterprises (SMEs) and mid-caps in tourism and other sectors severely affected by COVID-19 will benefit from a €50 million loan that the European Investment Bank (EIB) has signed with the Montenegrin Investment and Development Fund (IDF).

The loan will provide immediate support for the faster recovery of the Montenegrin economy by unlocking more affordable financing for SMEs, mid-caps, and public sector enterprises to sustain jobs and maintain their liquidity.

The loan is a part of the Team Europe Western Balkans COVID-19 recovery support programme, announced at the EU-Western Balkans Zagreb Summit in April. It provides affordable finance to businesses to ensure their continuity and faster and sustainable recovery from the pandemic. This facility is also the first allocation under the €500 million programme loan approved by the EIB Board of Directors in June 2020 targeting the public sector and national promotional banks in the Western Balkan region.

EIB Vice-President Dario Scannapieco said: “SMEs and mid-caps in Montenegro have been severely hit by the COVID-19 pandemic. With tourism being the main driver of economic growth, the EIB will help Montenegro face these unprecedented challenges, support its main source of income, recover faster and build a more resilient economy. Our more affordable loans will support other key sectors such as trade, transport and construction. We are proud to deliver this key component of Team Europe’s support package for Montenegro as a candidate country to join the European Union.”

The EIB loan will be available at the IDF to individual entrepreneurs, companies, and public enterprises operating in various sectors. This operation specifically aims to address the working capital, liquidity needs, and investment constraints of SMEs and Mid-Caps in Montenegro in the context of the COVID-19 outbreak. The credit line will allow flexibilities to accelerate fund disbursement and address the most urgent liquidity and employment issues. It will encourage creating job opportunities and training for youth, under the initiative European Youth Employment and Training for the Western Balkans (EYET), promoting youth employment in Montenegro.

To date, the EIB and the IDF have signed five operations and disbursed €320 million to the Montenegrin economy, sustaining over 25 000 jobs.

Original source: EIB