EBRD Provides €17M To ProCredit Bank Kosovo To Support SME Growth, Green Transition, And Digital Transformation

The European Bank for Reconstruction and Development (EBRD) is expanding its support for small and medium-sized enterprises (SMEs) and mid-sized companies in Kosovo through a new €17 million financing package provided to ProCredit Bank Kosovo (ProCredit). This initiative aims to offer tailored financial solutions that help local businesses grow, modernize, and adopt sustainable practices.

The financing package is composed of two main components. A €10 million loan is provided under the Western Balkans Green Outcomes-Linked Debt (WB GOLD) Financing Framework, marking the first WB GOLD transaction in Kosovo. This innovative programme encourages outcome-based incentives that reward banks for increasing green lending, driving the country’s transition to low-carbon, climate-resilient economies.

Through this loan, local SMEs and mid-sized companies will be able to invest in energy-efficient technologies and renewable energy while supporting overall business growth. At least 50 percent of the funds will be allocated to projects aligned with the EBRD’s Green Economy Transition (GET) approach, helping Kosovo’s companies adopt greener practices. ProCredit, as the first partner financial institution to implement the WB GOLD programme in Kosovo, has played a key role in shaping the framework for this transaction.

The second component is a €7 million loan provided through the EBRD’s Go Digital in the Western Balkans programme. This facility is designed to help SMEs modernize their operations by investing in automation, digital tools, and green technologies. At least 60 percent of this funding will support projects that improve efficiency and align with the GET strategy. The programme also emphasizes equal opportunities, particularly promoting women-led businesses and fostering inclusive growth.

In addition to the loans, SMEs can access European Union (EU) grants worth up to 10 percent of their individual sub-loans, along with expert technical assistance, delivered through the Western Balkans Investment Framework (WBIF). These grants and support services are intended to enhance the impact of the financing by enabling businesses to implement modern, sustainable practices more effectively.

Sergiy Maslichenko, Head of the EBRD in Kosovo, stated that supporting digital transformation and the green transition of SMEs is central to the Bank’s mission in the country. He emphasized that the new financing package will provide businesses with the resources they need to innovate, grow, and operate more competitively and sustainably. Maslichenko also highlighted the deepening partnership with ProCredit as a key element in promoting economic growth and sustainable development in Kosovo.

Visar Paçarada, Chief Executive Officer of ProCredit, said that the bank is committed to assisting Kosovo’s SMEs and mid-sized companies through forward-looking initiatives. He noted that the WB GOLD programme allows clients to invest in energy-efficient and renewable technologies, while the Go Digital programme promotes automation, digital transformation, and sustainable business practices. Paçarada added that with the support of EU grants and technical assistance, ProCredit is fully committed to helping businesses expand, improve competitiveness, and operate sustainably.

Hubert Perr, Head of Cooperation at the EU Office in Kosovo, emphasized the importance of supporting SMEs through the Go Digital programme. He stated that the initiative, backed by EU funding through the WBIF and supported by financial institution partners, will accelerate the digital transformation of the private sector, foster a greener economy, and strengthen the overall competitiveness of Kosovo’s businesses.

ProCredit Bank Kosovo is a leading provider of financing to SMEs in Kosovo and has a longstanding partnership with the EBRD. The bank has a proven track record of efficiently channeling EBRD funds to targeted economic sectors. The EBRD was previously a minority shareholder in ProCredit from 2001 to 2007. To date, the EBRD has invested €840 million in Kosovo through 138 projects across the country, supporting the growth and development of the private sector.