Agreement on EUR 48 million for companies in Balkans signed

At the meeting of the leaders of the Western Balkans and high officials of the European Union in Trieste, an agreement on the Western Balkans Enterprise Development and Innovation Facility worth EUR 48 million was signed. The new sum is added to the already available EUR 100 million for the support of companies in the region.

Johannes Hahn, Commissioner for European Neighborhood Policy and Enlargement Negotiations, said at the signing ceremony within the Business Forum at the Western Balkans Summit that the agreement would enable support to development and activities of six thousand companies in the Western Balkans. The funds were also provided by the European Investment Fund, the World Bank and some other international financial organizations.

As Hahn said, the EU has already provided EUR 220 million in the past ten years, enabling companies in the region to get 400 thousand loans in the amount of over EUR 3 billion.

According to him, there are considerable possibilities for further development in the Western Balkans area and that's why financial support needs to be provided.

– Economic readiness is of crucial importance for the countries of the region joining the EU. If they are economically attractive for both foreign investors and people from within those countries, it will have an impact on the quality and the independence of the judiciary – he said.

As Hahn added, this would “attract foreign investors as well, if they see they can rely on judicial independence”.

Further steps are needed in the support of SMEs in the Western Balkans, Pierre Heilbronn, EBRD Vice President for Policy and Partnerships, said on July 12, at the Western Balkans Summit in Trieste.

Heilbronn pointed out that the sector was the driving engine of innovation and economic growth in the region. According to him, the key thing was to find mechanisms for support of SME development, among other methods, through improving their financial and corporate management – the main components in becoming a banking client with a good credit rating.

The EBRD itself places great focus on SMEs in its activities, combining financial aid with providing know-how and consulting services and carrying out the Women in Business program, which promotes women entrepreneurs and their role in the economy.