MICROCAPITAL BRIEF: EIB Lending Crédit Agricole Srbija $33m for Investing in SMEs, Mid-Caps in Serbia

The European Investment Bank (EIB), the long-term lending institution of the EU, recently gave the Serbian unit of the French banking group Crédit Agricole access to EUR 30 million (USD 33 million) of a EUR 50 million (USD 55 million) line of credit. Crédit Agricole Srbija agreed to use the loan to support Serbian small and medium-sized enterprises (SMEs), which EIB defines as those employing 10 to 249 people, as well as mid-cap companies, which employ 250 to 3,000 people. The funding is projected to sustain around 10,000 jobs in 300 companies, particularly those active in manufacturing, agriculture and tourism. The loan also will support youth employment as part of the European Youth Employment and Training for the Western Balkans initiative.

Matteo Rivellini, EIB’s Head of Lending Operations for Croatia, Slovenia, and Western Balkans, said of the deal, “The bank of the European Union continues in its support activities to local businesses in Serbia. The contract signed with Crédit Agricole Srbija will improve the access of Serbian companies, including fast-growing mid-cap companies, to long-term financing provided on favourable terms, with positive effects on [the] job market and social environment.”

The predecessor to Crédit Agricole Srbija was established in 2001 as a microfinance institution. It became a unit of the Crédit Agricole Group in 2005. As of December 2018, it held total assets of EUR 837 million (USD 930 million), serving 268,000 customers via 80 branches. During the quarter ending September 2019, the Crédit Agricole Group brought in EUR 10 billion (USD 11 billion) in revenue.

Created in 1958, EIB supports projects in EU member states, likely future member states and other EU partner countries, principally in the area of SMEs. As of 2018, EIB reported total assets of EUR 556 billion (USD 621 billion) and a loan portfolio of EUR 451 billion (USD 504 billion).

Sources and Additional Resources

EIB press release
https://www.eib.org/en/press/all/2019-379-eur-50-million-from-eib-to-credit-agricole-srbija-to-support-local-companies-and-projects#

Crédit Agricole Srbija homepage
https://www.creditagricole.rs/Pocetna

Crédit Agricole Group data on Crédit Agricole Srbija
https://www.credit-agricole.com/en/bpi/bpi-countries-profile/serbia/credit-agricole-in-serbia

Crédit Agricole Group finances
https://www.credit-agricole.com/en/finance/finance/financial-information

Crédit Agricole Group homepage
https://www.credit-agricole.com/

EIB homepage
https://www.eib.org/

EIB 2018 annual report
https://www.eib.org/en/publications/financial-report-2018

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