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).