Description:
This report assesses the impact of the intermediated lending of the European Investment Bank (EIB) on small and medium enterprises (SMEs) in the Western Balkans, with a particular focus on employment. The EIB plays a central role in the financing of SMEs and mid-caps in the Western Balkans (Bosnia and Herzegovina, Montenegro, North Macedonia and Serbia), where firms' access to bank-lending finance is low compared to EU standards. With the aim of spurring firms' growth, the EIB channels liquidity through financial intermediaries on favourable conditions, such as providing lower interest rates or longer tenure.