Erste Bank Serbia will lend the funds on to SMEs in the country that are looking to invest in energy- and resource-efficient green technologies with a view to making their operations more sustainable and competitive, in line with the EU's green agenda.

While all of the funding will be used to support investment in green technologies, the credit line will have a particular focus on investment in agriculture and agribusiness, supporting the greening of agriculture and agribusiness value chains in the region. It will also support women-led SMEs, helping to make access to climate finance more equitable for women entrepreneurs in recognition of their key role as early adopters of green technologies and sustainable business practices.

On successful completion of their investment projects, SMEs will be eligible for an EU grant equal to 10 per cent of the loan amount, with a higher figure of 15 per cent for investments in renewable energy and the agribusiness value chain. In addition to such grant incentives, SMEs will also benefit from EU-funded technical assistance, helping them to prioritise their investments and structure them accordingly.