Short description of the overall project

The loan is intended to finance small and medium-sized projects in infrastructure, industry, transport, services, innovation, agriculture and tourism, with a special window dedicated to climate action, environmental protection and energy efficiency.

Short description of activities financed by the donation

The credit line addresses access to finance constraints in Montenegro, where around 47% of firms needing a loan are financially constrained due to high interest rates according to the Enterprise Survey conducted by the European Investment Bank, the European Bank for Reconstruction and Development and the World Bank in 2019. In the continuity of the Team Europe's objective to help Small and Medium-sized Enterprises (SMEs) recover from the COVID-19 pandemic in the Western Balkans, this project will further support the resilience of the final beneficiaries and contribute to address suboptimal investment situations. With the intermediation of the Investment and Development Fund of Montenegro, a well-known counterpart with a good track record in the allocation of EIB funds, and thanks to the long-term EIB funding, flexible disbursement and attractive financial conditions, the operation will have a strong impact on the SME sector growth and employment (with a special focus on youth employment and training). This new credit line, which also includes a 20% Climate Action and Environmental Sustainability window, will also initiate the shift to more climate action awareness among the final beneficiaries in the region.