Serbian Businesses Get €22 M Boost for Smart Technology and Green Growth

The agreement is Serbia’s first operation under the EIB’s Innovation and Green Transformation Facility for the Western Balkans, with Erste Bank responsible for directing the funding to eligible businesses.

Serbian businesses looking to modernise equipment, develop new products or make farming more sustainable will gain access to favourable financing through a €22 million agreement between the European Investment Bank (EIB) and Erste Bank a.d. Novi Sad. The package combines a €20 million EIB loan with a €2 million European Union grant, giving small and medium-sized enterprises (SMEs) and mid-cap companies financial support for investments that can improve their operations and strengthen their competitiveness.

The agreement is Serbia's first operation under the EIB's Innovation and Green Transformation Facility for the Western Balkans, with Erste Bank responsible for directing the funding to eligible businesses. It brings lending, repayment relief and technical support together to help companies develop projects that contribute to a more innovative, resource-efficient and resilient economy.

Funding for Technology, Cleaner Operations and Farming

Resource efficiency and sustainable agriculture are part of the package, including investments in livestock and crop production. These areas connect the needs of individual businesses with wider efforts to reduce industrial emissions and strengthen climate resilience across the Western Balkans. EIB Director for Enlargement and Neighbourhood Richard Amor described the support as a way to help Serbian companies turn innovation and sustainability into competitive advantages, linking private-sector growth with economic resilience and closer integration into the EU market.

EU Grant Offers 10% Repayment Relief

The EU grant, channelled through the Western Balkans Investment Framework, will allow companies receiving loans under the agreement to reduce their repayment sum by 10%. That relief adds a direct financial incentive to the lending package, lowering the amount businesses must repay as they commit money to digital upgrades, green technologies and sustainable agricultural projects.

The grant component includes EIB technical assistance to Erste Bank, supporting its work with companies to prepare projects suitable for financing. Assistance will strengthen cooperation with Serbia's innovation network and include support for startups at an early stage of development, connecting access to funding with practical help for businesses working to turn new ideas into viable investments.

Building Stronger Businesses and Closer EU Links

Erste Bank Chief Executive Officer Jasna Terzić said the partnership would help Serbian companies accelerate digitalisation, improve sustainability and strengthen their market position. She described it as the first financing facility of its kind available in Serbia, highlighting how investment in innovation, green technologies and sustainable agriculture can support both individual businesses and the country's longer-term economic competitiveness.

The agreement supports broader efforts to deepen the Western Balkans' economic integration with the EU, making industrial decarbonisation and climate resilience part of private-sector development. Julian Vassallo, Deputy Head of the EU Delegation to Serbia, said the combination of EIB lending and EU grants would help businesses invest, grow and become more competitive, reinforcing European support for Serbia's private sector and its connections with the EU Single Market.