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- EBRD provides €4.5 million to Banka për Biznes to support youth-led MSMEs in Kosovo
- Financing to help entrepreneurs under 35 overcome barriers to growth
- Donor support from the EU through EFSD+ Growth4All Programme, Sweden, Italy and Luxembourg
The European Bank for Reconstruction and Development (EBRD) is extending a €4.5 million loan to Kosovo’s Banka për Biznes (BpB) to expand access to finance for young entrepreneurs in the country.
The loan, provided under the Western Balkans Youth in Business (YiB) programme, will support micro, small and medium-sized enterprises (MSMEs) owned or led by individuals under the age of 35. This agreement builds on the success of the first YiB loan to BpB, which was signed in September 2022.
The programme aims to address the disproportionate barriers faced by young entrepreneurs, such as insufficient collateral, limited credit history and lack of management experience.
The YiB loan is backed by the European Union (EU) through the EFSD+ Growth4All Programme, which provides first-loss risk cover for loans issued to young entrepreneurs. Thanks to EU guarantees, BpB will be able to channel more resources to youth-led MSMEs, while also offering advisory services, networking opportunities and tailored financial products to help them grow their business.
Additional technical cooperation support to strengthen BpB’s capacity and enhance services for youth-led MSMEs is being provided by Sweden through the Swedish International Development Cooperation Agency, by Italy through the Central Europe Initiative, by Luxembourg through the EBRD Small Business Impact Fund and by the EU through EFSD+.
BpB, a partner of the EBRD since 2010, offers a wide range of commercial banking products to all segments, with a primary focus on MSMEs. The EBRD holds a 10 per cent equity stake in BpB, underscoring its commitment to strengthening the institution’s role in supporting private-sector development.
Sergiy Maslichenko, EBRD Head of Kosovo, said: “Young entrepreneurs are vital to Kosovo’s future economic growth. By supporting BpB in expanding its lending to youth-led MSMEs, we are helping to unlock opportunities for innovation, job creation and inclusive development in their country.”
Hubert Perr, Head of Cooperation at the EU Office in Kosovo, said: “The EU is proud to back the next generation of entrepreneurs by providing vital support through bank guarantees. This commitment helps young business owners overcome financial barriers and drives sustainable growth and innovation in Kosovo.”
Mimoza Godanci-Aliu, Chief Executive Officer of BpB, added: “We are excited to continue our strong partnership with the EBRD through this new loan for the Youth in Business programme. Over the past two years, we’ve worked together to support young entrepreneurs in Kosovo, and this new phase marks an important step in expanding our impact. At BpB, we remain committed to driving sustainable development and creating opportunities for the next generation of business leaders.”
The agreement was signed by Mr Maslichenko and Ms Godanci-Aliu during the “Lead the Future: Young. Digital. Green.” event in Prishtina, in the presence of international partners. The event brought together young entrepreneurs and small businesses to explore digital transformation and financing opportunities through the EBRD’s YiB and Go Digital programmes.
YiB is active in Central Asia, Egypt, Morocco, Türkiye and the Western Balkans, and is designed to make financing more accessible for businesses across all participating EBRD recipient economies.
To date, the EBRD has invested €827 million through 133 projects in Kosovo.