EBRD financing package backs TEB Kosovo green and digital lending

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EBRD backs TEB Kosovo lending

Highlights

EBRD provides TEB Kosovo with a €21 million financing package split into four credit lines targeting green, digital, and inclusive lending for households and SMEs.
The EU complements the package with grants, technical assistance, and risk-sharing elements, focusing on green and digital investments and support for women-led MSMEs.
At least 33% of SME Go Green investments will be in agribusiness, 25% of MSMEs supported will be women-led, and 60% of Go Digital funding targets automation and green projects.

Funding lines target households and SMEs

As reported by European Bank for Reconstruction and Development, the financing package comprises four credit lines designed to widen access to green, digital and inclusive finance in Kosovo.

The package includes €6 million through the Western Balkans Green Economy Financing Facility, which enables households to invest in more energy-efficient homes and supports energy-efficiency and renewable-energy projects in the public sector. Another €5 million comes through the SME Go Green programme to help micro, small and medium-sized enterprises invest in energy and resource efficiency, renewable energy and other green technologies.

A further €5 million is being provided through the Go Digital in the Western Balkans programme for SME investment in automation, digitalisation and green technologies. The remaining €5 million comes through the Western Balkans Women in Business programme, aimed at expanding finance and know-how for women-led MSMEs.

Under the programme targets, at least 33 per cent of SME Go Green investments are expected to be in the agribusiness value chain, while 25 per cent of supported MSMEs are expected to be women-led. In the Go Digital programme, at least 60 per cent of investments will finance automation and digitalisation projects, and at least 60 per cent will support the green economy.

EU support adds grants and risk sharing

The European Union is complementing the financing package with grants and technical assistance for green and digital investments through the Western Balkans Investment Framework. It is also supporting the Women in Business financing through the European Fund for Sustainable Development Plus, including capacity building and first-loss risk cover, while the Japan-EBRD Cooperation Fund is providing additional technical assistance under the Green Economy Financing Facility.

Sergiy Maslichenko, the EBRD's Head of Kosovo, says the funding will help SMEs invest, modernise and grow while improving opportunities for women entrepreneurs and helping households cut energy costs. Cihan Yilmaz, managing director of TEB, says the package supports the sustainable growth and competitiveness of Kosovo's economy through green and digital transformation.

Hubert Perr, head of cooperation at the EU Office in Kosovo, says the package combines EBRD loans with EU grants, technical assistance and risk sharing to expand opportunity and improve access to finance. Established in 2007, TEB Kosovo is a subsidiary of TEB Holding, a joint venture between BNP Paribas and the Çolakoğlu Group, while the EBRD has invested almost €990 million through 152 projects in Kosovo, with most of that investment directed to the private sector.

In our earlier article on Pakistan’s push to expand priority-sector lending, we covered the government’s targets to raise credit for housing, agriculture and SMEs, alongside tighter expectations for banks seeking access to incentives. The piece outlined planned reforms such as simplified application processes, updated SME regulations, risk-sharing arrangements and public-private partnerships aimed at removing structural barriers to formal credit growth.

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