Skopje, 15 April 2024 (MIA) — Launched in 2022, the European Union-funded WB EDIF Guarantee for SME Resilience Initiative will increase access to finance for small and medium enterprises and their ability to cope with challenging economic circumstances, the EU Delegation in North Macedonia said in a press release.

Available under affordable lending conditions, the financing made possible by the guarantee will contribute to business expansion, employment and economic growth in the region. In North Macedonia, EIF guarantees have unlocked around EUR 225 million in total to date for over 1,000 small businesses, which has helped sustain 64,000 jobs.

"The European Investment Fund, part of the EIB Group, has signed portfolio guarantee agreements with 11 banks and financial intermediaries in the Western Balkans economies. Funded under the European Union’s WB EDIF (Western Balkans Enterprise Development and Innovation Facility) Guarantee for SME Resilience Initiative, these agreements will enable local banks and financial institutions to build a portfolio of SME loans for an aggregate amount well above EUR 750 million, along with those yet to signed in the first half of 2024," the release says.

"These financial resources are intended to increase access to finance among small businesses and improve their resilience to ongoing economic distress, while creating conditions for business expansion, employment and innovation. In North Macedonia, this facility is expected to deploy a total of EUR 60 million worth of loans available at favourable lending conditions to some 1,100 small businesses, while sustaining over 15,000 jobs."

According to the release, EIF Chief Executive Marjut Falkstedt said: “By supporting small businesses in the Western Balkans, especially in the most underserved and fragile segments, these extensive financial resources will improve these businesses’ capacity to innovate and grow, while at the same time contributing to further integration within the EU economy. By doing so, these substantial funds will provide additional impetus for the development of robust and competitive regional economies, as well as their advancement within the global value chains.”

Head of the EU Delegation to North Macedonia Ambassador David Geer said: “Micro, small and medium-sized enterprises form the backbone of North Macedonia’s economy. Thanks to the WBIF Guarantee for SME Resilience, such companies will be able to obtain loans under more favourable conditions. In turn, this will help them invest in new technologies, improve business, managerial and technical capacities, promote growth and contribute to resilience and competitiveness."

"This assistance is part and parcel of the European Union’s wider support for the sector across the Western Balkans and is yet another example of the European Union’s continued commitment to the development and prosperity of the region,” Geer is quoted as saying in the release.

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe's SMEs by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.