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EBRD, EU forge ahead private sector in Western Balkans and Türkiye

Türkiye Materials 1 March 2024 16:25 (UTC +04:00)
Abdullo Janob
Abdullo Janob
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BISHKEK, Kyrgyzstan, March 1. The European Bank for Reconstruction and Development (EBRD) and the EU have entered into a new guarantee agreement, Trend reports.

According to the bank, the agreement includes a financial guarantee of up to 52.5 million euros for the Western Balkans and Türkiye. This financial guarantee is intended to support partner financial institutions in lending to Micro, Small, and Medium Enterprises (MSMEs).

It specifically targets businesses led by women or young people, those located in rural areas, and, in Türkiyeurkey, those in earthquake-prone zones. The finance is intended to help these groups create competitive enterprises and reach their full potential.

Finally, this effort will strengthen and diversify private-sector activity, helping to promote more inclusive economies in the Western Balkans and Türkiye. The guarantee is expected to raise at least 400 million euros in funding from the EBRD and private investors.

The EU is providing this guarantee through its European Fund for Sustainable Development Plus (EFSD+) guarantee program, which aims to support financing and investment activities in non-European partner countries.

“This guarantee will make it easier to lend to small businesses, women, and young entrepreneurs who have traditionally had difficulty accessing financing. Their innovative and effective projects will lead to sustained growth and improved livelihoods,” Mathieu Bousquet, DG NEAR Director for Thematic Support, Coordination of Policy, and Financial Instruments, said.

The EFSD+ is one of the financing tools of the Global Gateway European strategy, promoting sustainable investments in EU partner countries. Offering a variety of risk-sharing instruments of up to 40 billion euros, the EFSD+ aims to mobilize up to 135 billion euros of public and private financing to help partner countries achieve the Sustainable Development Goals (SDGs).

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