EBRD and ProCredit Bank Kosovo Join Forces to Advance Green Investments and SME Growth

EBRD and ProCredit Bank Kosovo Join Forces to Advance Green Investments and SME Growth

(IN BRIEF) The EBRD is providing €13 million to ProCredit Bank Kosovo through two initiatives: €8 million under the SME Reboot Programme to help small and medium-sized enterprises (SMEs) invest in green technologies and €5 million through the Green Economy Financing Facility (GEFF) to promote energy-efficient upgrades in the residential sector. SMEs will benefit from cash incentives of up to 15%, while homeowners can receive up to 20% for installing sustainable technologies like insulation, solar panels, and heat pumps. Supported by international partners, this funding aims to boost Kosovo’s green transition, reduce emissions, and enhance economic growth.

(PRESS RELEASE) LONDON, 23-Nov-2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is reinforcing its commitment to Kosovo’s economic development and green transition through a €13 million financing package for ProCredit Bank Kosovo. The funding is allocated to two distinct initiatives aimed at enhancing SME competitiveness and promoting energy efficiency in the residential sector.

Supporting SMEs with Green Investments
A senior loan of up to €8 million under the EBRD’s SME Reboot Programme will enable small and medium-sized enterprises (SMEs) in Kosovo to invest in high-performing green technologies. These upgrades will help local businesses become more competitive and align with European Union (EU) and international standards. Denmark and Switzerland are contributing technical support through the EBRD’s Small Business Impact Fund (SBIF), while Norway, Luxembourg, Switzerland, and the United States are funding grant incentives. SMEs can receive cashback incentives of up to 15% of their loan amount to make these investments more accessible.

Greening Kosovo’s Residential Sector
An additional €5 million loan under the Green Economy Financing Facility (GEFF) will support energy efficiency and renewable energy projects for homeowners, housing collectives, and construction firms. Residents will benefit from incentives of up to 20% of the loan amount for installing sustainable technologies such as insulation, heat pumps, solar panels, and energy-efficient windows. The EU, Japan, and Denmark are backing this initiative, which includes advisory services to help residents choose and install the best solutions for reducing energy consumption and greenhouse gas emissions.

Strengthening a Proven Partnership
ProCredit Bank Kosovo, the country’s third-largest commercial bank, has been a long-standing EBRD partner, known for its expertise in SME lending and its successful track record with EBRD-supported credit lines.

Sergiy Maslichenko, EBRD Head of Kosovo, emphasized the significance of these investments:
“This collaboration demonstrates our commitment to Kosovo’s green transition and economic growth. By supporting SMEs and greening the residential sector, we aim to create opportunities for businesses while helping individuals reduce energy costs and emissions. These projects mark an important step in advancing sustainability across the country.”

Visar Paçarada, CEO of ProCredit Bank Kosovo, added:
“Our partnership with the EBRD reflects our shared dedication to driving sustainable progress in Kosovo. By empowering SMEs and promoting energy-efficient practices in the residential sector, we enable businesses to grow responsibly and individuals to invest in environmentally friendly solutions, fostering economic and environmental resilience.”

EBRD’s Continued Investment in Kosovo
As a leading institutional investor in Kosovo, the EBRD has financed 112 projects, totaling over €680 million. This latest initiative underscores the Bank’s ongoing commitment to advancing economic development and sustainability in the region.

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Email: Group-PressUnit@ebrd.com

SOURCE: EBRD