EBRD, EU Back Montenegro's Green Transition With €3M Loan For Smes

12/13/2024 3:10:56 PM

(MENAFN- Trend News Agency) BAKU, Azerbaijan, December 13. The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has extended a loan of up to 3 million euros to NLB Banka AD Podgorica, Trend reports.

The funding, provided under the SME Go Green program and co-financed by the EU through the Western Balkans Investment Framework (WBIF), aims to bolster Montenegro's small and medium-sized enterprises (SMEs) by promoting green and sustainable investments.

The loan will enable NLB Banka to finance SMEs implementing energy-efficient and renewable technologies. At least 25% of the supported businesses are expected to be women-led, promoting inclusiveness alongside sustainability. As an added incentive, SMEs completing eligible projects will qualify for cashback grants covering 10% of the loan amount, or 15% for projects focused on renewable energy or the agribusiness value chain, funded by the EU.

The program is designed to scale up green investments, reduce environmental impact, and enhance resilience to climate change. It also aims to improve SME competitiveness and facilitate the adoption of internationally recognized quality standards. Furthermore, it supports equitable access to finance for women-led SMEs and strengthens the financial sector in Montenegro and the Western Balkans.

During the signing ceremony in Podgorica, Remon Zakaria, Head of EBRD in Montenegro, stated:“We are excited to introduce the SME Go Green program with our long-standing partner, NLB Banka, which has been instrumental in promoting women's empowerment and now actively supports the green transition of Montenegro's economy. This initiative will help businesses access finance for green investments, aligning their products and services with EU climate and environmental standards.”

Since Montenegro became an EBRD member in 2006, the Bank has invested 906 million euros in 94 projects across the country, prioritizing competitiveness, green initiatives, and regional integration.

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