The European Union is providing €1.5 million in incentive grants for small and medium-sized enterprises (SMEs) in Serbia as an addition to the €10 million loan from the European Bank for Reconstruction and Development (EBRD). The loan will be provided through OTP Leasing Srbija and aims to support the competitiveness of the country’s SMEs.

The financing is being provided under the EBRD’s SME Competitiveness Programme, through which local companies can access well-structured finance, including incentive grants worth up to 15% of their loan amount. The aim of the programme is to support Serbian SMEs in upgrading their businesses to EU standards in areas such as environmental protection, worker safety and product quality. Participating small businesses will also be offered technical assistance to help prepare and implement their investments. The grants and technical assistance are being financed by the EU through the Instrument for Pre-Accession Assistance (IPA) and in close coordination with Serbia’sMinistry of Economy.