EIB Group :

1. ConfindustriaItalyConferenceEIB Financial Instruments and Support to Investment ProjectsBelgrade, 15April 2013Andreas BeikosHead of OfficeEuropean Investment BankWestern Balkans Representative Office in Belgrade European Investment Bank

2. EIB Group: • EIB : European Union’s financing institution • Created by the Treaty of Rome in 1958 as the long-term lending bank of the EU • Shareholders are the 27 Member States of the EU • Policy driven Bank: raises funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives • Operates on a non-profit maximising basis and lends at close to the cost of borrowing • AAA rating • EIF : EIB Group’s specialist vehicle for VC and SME guarantees • Established in 1994 • Shareholders are the EIB, European Union and commercial banks • Acts as a “fund of funds” by acquiring holdings in venture capital funds (VCF) which take equity participations in SMEs • Extends guarantees to the banking community to foster the provision of medium and long-term loans to SMEs • AAA rating European Investment Bank

3. EIB Signatures 1958-2011 European Investment Bank

4. Signatures and disbursements European Investment Bank Group European Investment Bank Group 4

5. Lending (signatures) in 2012: EUR 52.2bn (Of which EUR 671m in the Western Balkans) Pre-accession Countries include: Candidate Countries: Croatia, Iceland, the Former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey. Potential Candidate Countries: Albania, Bosnia and Herzegovina, Kosovo. European Investment Bank Group European Investment Bank Group 5

6. EIB Priority Objectives • Outside the Union: • Private sector development • Infrastructure development • Security of energy supply to EU • Environmental sustainability (RE + EE) • Western Balkans: EIB operates under the Pre-Accession EU Mandate (given by EC to EIB) and the Pre-Accession Facility (at EIB own risk) European Investment Bank

7. EIB group strategy in the Western Balkans • Long term loans (public/private borrowers + SMEs) • WBIF (Technical assistance and grant support) • EDIF (Venture capital for SMEs) European Investment Bank Group

8. Serbia: the main beneficiary of EIB loans in the Western Balkan Regioncirca EUR 4.0 bn   11/03/2013 European Investment Bank Group 8

9. EIB Products In the Western Balkans, the EIB operates primarily through: Direct loans to projects generally with a cost above EUR 25 million Intermediated loans channeled through intermediary banks (credit lines to banks), whereby intermediaries are obliged to transfer the financial benefits from EIB resources to SMEs and municipalities - Currently, existing credit lines for SMEs and municipalities in the region amount to EUR 2 billion - Framework loans to central and local public authorities for projects of up to EUR 50 million - The EIB contributes to the European Fund for Southeast Europe(EFSE - www.efse.lu) that provides sustainable financing to micro and small enterprises and to the Green for Growth Fund South East Europe (for RE and EE - www.ggf.lu) European Investment Bank

10. SME financing: A key priority for the EIB • SME financing has been reinforced as one of the priority objectives of the EIB Group since 2005 • The role of the EIB Group is to facilitate access to finance for SMEs at better financial conditions: • channel increased funding sources and intensifying our partnership with the banking sector • provide and develop a wider range of products SMEs can find the list of EIB financial intermediaries in Western Balkans, including contact details, on EIB website. www.eib.org/about/news/the-intermediary-banks-and-financing-institutions-for-credit-lines.htm European Investment Bank

11. EIB Loan for SMEs EIB Loan For SMEs Financial Intermediary (lending to SMEs) Favorable interest rate loans SME SME SME SME SME SME European Investment Bank

12. WBIF • Innovative blending instrument developed jointly by the EIB, European Commission, EBRD, CEB and other donors. • Blends grants and loans for preparation and financing of priority projects in the framework of the EU Pre-Accession process. • Since December 2009, 280 million Euros grants for 138 projects. EUR 7.7 bn of loans committed, of which EUR 2.3 bn signed. • Of these, 27 projects were supported in Serbia, benefitting from EUR 34 million grants. • In 2012, 31 projects approved, providing EUR 59 m grants (EUR 27 m from the Commission. EUR 1.4 bn of loans were committed. • In 2012 in Serbia 3 projects were approved for 3.2 million. European Investment Bank Group

13. Western Balkans Enterprise Development & Innovation Facility (EDIF) • Joint initiative of EC, EIF and EBRD within the context of Western Balkans Investment Framework • WB Beneficiaries, IFIs and Donors are also participating • An initial EUR 142m to utilise innovative financial instruments for SME Access to Finance Facility • Pillars • Two Equity funds to pursue equity investments in innovative and high growth SMEs • A Guarantee Facility to guarantee SME loans • Technical Assistance component for regulatory reforms aiming at SME access to finance European Investment Bank Group

14. Perspectives 2013 Serbia • New APEX Loan for SMEs operation through RoS (EUR 500m requested) • Road rehabilitation and safety (EUR 100m) (EIB/EBRD/WB co-financing) • SMEs (Crédit Agricole EUR 50 m) FYROM • SMEs (Macedonian Bank for Development Promotion – amount tbc). BiH • Motorways (Banja Luka-Doboj EUR 100m) (EIB/EBRD co-financed) • SMEs (EUR 60m) • Electricity Distribution (EUR 60 m). Montenegro • SMEs (SocGen EUR 20 m) • Road rehabilitation and By-passes (EUR 30m). Albania • Vlore By Pass (EUR 18m). (EIB/EBRD/IPA co-financed) 11/03/2013 European Investment Bank Group 14

15. Operations signed since 2001(excluding financial institutions) European Investment Bank

16. THANK YOU Andréas Beikos Head of Representative Office for the Western Balkans European Investment Bank E-mail: a.beikos@eib.org Tel: +381 11 312 1756 European Investment Bank