- €25 million portfolio risk-sharing to unlock €50 million in MSME lending
- Two loans of €3 million each, under the Go Digital and GEFF programmes, to drive digitalisation, energy efficiency and green technologies
- Package supported by the EU through the WBIF and EFSD+
The European Bank for Reconstruction and Development (EBRD) is expanding its cooperation with Raiffeisen Bank Kosovo through a comprehensive €31 million financing package that will strengthen access to finance for micro, small and medium sized enterprises (MSMEs), accelerate digital transformation and foster green investment across Kosovo.
The package comprises an unfunded portfolio risk-sharing guarantee of up to €25 million, a €3 million loan under the Go Digital in the Western Balkans programme, and a €3 million loan under the EBRD Green Economy Financing Facility (GEFF).*
Under the expanded portfolio risk-sharing facility, the EBRD will provide an unfunded guarantee of up to €25 million, covering up to 50 per cent of a newly generated €50 million MSME loan portfolio originated by Raiffeisen Bank Kosovo. The arrangement includes European Union-backed first loss risk cover of up to €2 million under the EU’s European Fund for Sustainable Development Plus (EFSD+). By sharing risk on a pro rata basis, the programme unlocks new lending with Raiffeisen Bank Kosovo’s own funds to businesses across Kosovo. The funds will be used to finance sub-loans to eligible MSMEs, with at least 30 per cent directed to green investments aligned with the EBRD’s Green Economy Transition (GET) approach, and focusing on youth- and women-led enterprises, firms outside Prishtina, and the agribusiness and tourism sectors.
The EBRD will also extend €3 million under its Go Digital in the Western Balkans programme to help SMEs modernise through automation, digital tools and green technologies. At least 60 per cent of the financing will support digitalisation projects, and at least 60 per cent of the total investments will be GET-eligible. The EU will provide support through the Western Balkans Investment Framework (WBIF), including expert technical assistance and investment incentives for eligible automation and digitalisation projects of up to 10 per cent of the individual loan, payable upon verified completion of the project. The programme promotes inclusion, providing targeted training and support for women-led SMEs to strengthen their competitiveness and sustainability.
Under its GEFF facility, the EBRD will provide €3 million to expand GET-eligible, energy-efficiency and renewable-energy financing for MSMEs. The funds will help firms cut energy use and emissions by financing building upgrades (insulation, windows, heating and cooling systems), efficient equipment and processes, and small-scale renewable generation through solar panels. The package is supported by the EU, Japan, Denmark and other donors, with financing for technical assistance and investment incentives for eligible green projects, to be paid after the investments have been completed and verified.
Sergiy Maslichenko, EBRD Head of Kosovo, said: “Kosovo’s small businesses can benefit significantly from finance that rewards innovation and green investment. In partnership with Raiffeisen Bank Kosovo, this package expands lending capacity, shares risk and channels capital to projects that strengthen competitiveness and resilience, reaching underserved regions and women- and youth-led enterprises. With EU support through the WBIF, the project will accelerate Kosovo’s transition to a low-carbon, digitally enabled economy.”
Alessandro Bianciardi, Deputy Head of Cooperation at the European Union office in Kosovo, commented: “The Go Digital and GEFF initiatives demonstrate the European Union’s strong commitment to supporting sustainable growth, digital transformation, and competitiveness across the region. Through the support of the WBIF and EFSD+, this package will help businesses modernise, adopt greener technologies and unlock new opportunities for innovation, productivity and job creation.”
Anita Kovacic, CEO of Raiffeisen Bank Kosovo, said: “These agreements with the EBRD further strengthen our longstanding partnership and our shared commitment to supporting Kosovo’s economy. By combining risk sharing, digitalisation financing and green investments, this package enables us to expand access to finance for MSMEs across the country, particularly women- and youth-led enterprises.”
Raiffeisen Bank Kosovo is the largest commercial bank in the country and a longstanding EBRD partner, with a successful record of implementing EBRD projects since 2006. Headquartered in Pristina, it serves a wide range of clients, from private individuals and small firms to large corporates.
The EBRD is a leading institutional investor in the country, with a cumulative investment of €871 million in Kosovo through 139 projects to date.
* The EBRD GEFF in the Western Balkans is co-funded by the European Union through the Western Balkans Investment Framework, by Austria, Japan and Denmark, and by Austria and Switzerland through the High-Impact Partnership on Climate Action (HIPCA). The EBRD’s HIPCA is supported by Austria, Canada, Finland, Germany, the Netherlands, South Korea, Spain, Switzerland, the TaiwanICDF, the United Kingdom and the United States of America.