The European Bank for Reconstruction and Development (EBRD) said on Thursday it has signed an agreement with the European Union (EU) for a financial guarantee of up to Euro 52.5 million (Dollar 56.9 million) to back micro, small, and medium-sized enterprises (MSMEs) across the Western Balkans and Turkey.

The EU is providing the guarantee through its European Fund for Sustainable Development Plus (EFSD+) guarantee program, which supports financing and investment operations in partner countries outside of Europe, the EBRD said in a press release.

The guarantee is expected to mobilize at least Euro 400 million in EBRD and private-sector financing.

It is expected to help EBRD partners on-lend to MSMEs – in particular, women- or youth-led enterprises, those located in rural areas and, in Turkey, in earthquake-affected regions.

Ines Rocha, EBRD Managing Director for Impact and Partnerships, said: “I am delighted to sign this new guarantee agreement, which will benefit those who need our help the most. Together with our key partner, the EU, we are continuing to deliver on our common goal of improving lives, businesses, and economies across our regions.”

Mathieu Bousquet, DG NEAR Director for Thematic Support, Coordination of Policy and Financial Instruments said: “We are joining forces with EBRD to support sustainable investment in the Neighbourhood and Enlargement countries. With this guarantee, lending to small companies, women, and young entrepreneurs, who have generally difficulties accessing finance, will be facilitated. Their innovative and impactful projects will contribute to sustainable growth and better livelihoods.”