The European Bank for Reconstruction and Development (EBRD) is providing a €5 million loan to Raiffeisen Bank in Kosovo to boost the competitiveness of small and medium-sized enterprises (SMEs) and help them bounce back from the Covid-19 crisis.

Raiffeisen Bank will lend the funds to businesses looking to upgrade their technology and processes or services to achieve European Union (EU) standards, particularly those related to product quality, workers’ health and safety, and EU environmental requirements.

SMEs can also obtain technical assistance, including hands-on EBRD advisory support. Once they have successfully completed their investment, they will also be eligible for a cashback grant of 15 per cent of the total loan amount funded by the EU. This new facility is part of the Western Balkans SME Competitiveness Support Programme, to which the EBRD provides loans and the EU contributes incentive payments and technical assistance. The goal is to help SMEs modernise their activities and take advantage of trade opportunities in the Western Balkans region and the wider European market.