Creditors agreed on investment framework for western Balkans

European Commission, international finance institutions and members of EU have agreed on the new funds for projects in western Balkans, especially those related to infrastructure, small enterprises and energy-efficiency improvement.

The European Bank for Reconstruction and Development (EBRD), EC, the European Investment Bank (EIB) and the Development Bank of the Council of Europe have agreed on the Investment framework for western Balkans, for which all of them are going to provide aid and loans for financing priority projects.

- The funds will be granted for the projects in Serbia, Montenegro, Albania, Bosnia and Herzegovina, Croatia, Macedonia, and Kosovo - it was announced today (October 21, 2009) on EBRD's website.

European Commission has, so far, granted 110m EUR for support to financing municipal infrastructural projects and technical assistance. These funds are now part of the Joint Aid Fund.

EIB, EBRD and the Development Bank of the Council of Europe have promised to set aside 10m EUR each for technical and other assistance, while the countries of EU and other donors have been invited to give their contribution through European Joint Fund for Western Balkans, which is run by EIB and EBRD.

When it comes to loans, the creditors have promised to grant 1 billion EUR worth of loans.

It is stated in the announcement that good preparation and plans for realization of projects will be the condition for approval of the loan. What is also important is that the project contributes to economic growth of western Balkans in the process of admission to EU.

- The Agreement on Investment Framework for Western Balkans will be signed in the following weeks - it is stated in EBRD's announcement.