EU allocates 40m euros to fight the effects of pandemic in Southeast Europe

The European Commission has invested an additional 40m euros in the European Fund for Southeast Europe to help fight against the economic effects of the coronary pandemic in the Western Balkans and the EU's Eastern Community Region. Capital tools will be used to strengthen the capacity of local financial institutions to support small enterprises to overcome crisis challenges.

“Small enterprises play an important role in generate income and create jobs in these regions. However, most entrepreneurs in the Western Balkans and in the EU's Eastern Community have reported severe negative consequences to their businesses from the spread of the coronary, including suspension of operation and drastic decline in income”, the fund's statement said.

The European Fund for Southeast Europe in the past year financed 66 financial institutions in this part of the continent and eased 40 thousand new loans for entrepreneurs and households, helping save over 91 thousand jobs.

To support these efforts, the EU has allocated an additional 40m euros to the fund in question. The European Union has been an investor in this fund since its establishment in 2005, the announcement is further said.

New EU funds will contribute to financial institutions in the Southeast European region having ways to continue service to small enterprises. A considerable amount of tools are specifically earmarked for financing in local currency, providing additional security levels to protect borrowers from the risk of the currency scale.