The European Investment Bank (EIB) is the long-term lending bank of the European Union. Its task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Official cooperation between Investment and development Fund of Montenegro (IDF) and EIB has commenced in 2012 by the act of passing a decision on granting loan of 50 million EUR to IDF in order to finance SMEs in Montenegro. Until now, the cooperation between our two institutions has evolved as the overall IDF's portfolio has increased. Over time, the EIB has become the main strategic international partner of the IDF.

The decision of the European Investment Bank to support IDF in a form of a loan itself represents validation of the success the Government of Montenegro and Investment and Development Fund have achieved in providing for preconditions and establishing favorable economic environment for undisturbed and prompt growth and development of small and medium business.

What is EIB funding?

The EIB is strengthening its support for Europe’s SMEs and MidCaps by helping this important sector to access vital new lines of credit. The loan term is a minimum of 2 years (the actual length of the loan will depend on the economic and technical life of the project financed) and it can be used to finance from very small projects to investments with a maximum cost of EUR 25 million. The EIB’s contribution, however, cannot exceed EUR 12.5 million.

Who can apply for an EIB loan ?

  • Independent SMEs with less than 250 employees on a consolidated basis prior to investment based in Montenegro;
  • Independent MidCaps with less than 3.000 employees on a consolidated basis prior to investment based in Montenegro;
  • all economic sectors are eligible with few exceptions, amongst which production of weapons and ammunition, arms, military or police equipment or infrastructures, and equipment or infrastructure limiting people’s individual rights and freedom, gambling, tobacco related industries, activities involving testing on animals insofar as not in compliance with the “Council of Europe’s Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes” or whose environmental impact cannot be mitigated or offset, ethically or morally controversial sectors such as human cloning and pure property speculation.
  • Tangible investments: purchases of plant and equipment, with some exceptions concerning land purchases.
  • Intangible investments: particularly the expenditure involved in R&D, building up distribution networks in domestic or other markets within the EU, taking out or buying patents.
  • Medium and long-term working capital requirements to re-establish businesses’ general liquidity ratio.
  • You can receive beneficial interest rates compared to standard business lending rates – 0,5% lower than interest rates applicable to IDF credit lines. If the client meets the criteria presented by the European Youth Employment and Training for the Western Balkans („EYET“ initiative) , the interest rate is reduced by an additional 0.2%;
  • You can negotiate the term or repayment frequency of the loan to suit the circumstances and cash-flow requirements of your business.
  • It allows you to invest significantly in your business without adversely affecting your cash-flow or liquidity.

What can an EIB loan be used for?

The EIB loan can be used to finance all investments and expenditures that are incurred in the development of an SME or a MidCap i.e.:

What are the benefits for your Business?

In the period ahead IDF will continue its activities regarding modalities of prospective and established cooperation with EIB aimed at promoting both IDF operations and economic ambient as a whole.

For more information please anticipate an e-mail to This email address is being protected from spambots. You need JavaScript enabled to view it. or place a call to +382 20 41 66 00.

Extensive information related to the EIB Group support to SMEs and MidCaps can be found in the EIB website (www.eib.org).