- EBRD loan of up to €30 million for vital infrastructure
- Bank supports key service providers affected by coronavirus pandemic
- Infrastructure essential component of Bank’s Solidarity Package
A loan of up to €30 million by the European Bank for Reconstruction and Development will ensure the provision of essential infrastructure services in Kosovo as the country faces the impact of the coronavirus pandemic.
The unprecedented crisis has severely disrupted the economy and had a massive impact on public life. As a result, many infrastructure providers suffered a temporary shortfall in revenues, a challenge the EBRD loan is designed to address.
A first tranche of up to €14 million will be provided to the government for on-lending to vital infrastructure providers for immediate emergency support. A second tranche of up to €16 million will finance further support until revenues and collections have been restored. The EBRD will also support the Government of Kosovo in developing a state ownership policy for publicly-owned enterprises and improving corporate governance.
Support for vital infrastructure is a key component of the EBRD’s response to the pandemic. The Bank has adopted a Solidarity Package and expects to dedicate the entirety of its investment of up to €21 billion in the period 2020-21 to combat the economic impact of Covid-19.
Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group, said: “With today’s loan we are demonstrating our determination to address a challenge like no other. What is happening today has no parallels in what we have seen in our economies in modern times. We must all pull together to respond to the threat to public health and to mend the economy.”
With this loan, the EBRD has now invested more than €500 million in Kosovo through 75 projects since it began operations there in 2012.