EUR 10 million for municipalities - MIDF approves loan for UniCredit bank for local infrastructure development

(Kirk Mildner and Ljiljana Beric) TheFund for development of municipal infrastructure, (MIDF), set up for the support to West Balkanscountries, through approving EUR 10 m to UniCredit bank, will support developmentof sustainable infrastructure in Serbia, UniCredit bank in Serbia announced.

The funds are planned for loans to municipalities and public and privatecompanies which provide services to local self-governance. The funds will beused for construction and modernization of the existing municipal infrastructurein smaller municipalities which traditionally have limited capacity forsustainable infrastructure projects and which have difficulties in gettingloans in commercial banks in Serbia.

Total amount MIDF has is EUR 100 m, and it was set up by the European Bank forReconstruction and Development (EBRD)and German Development Bank (KfW), thanks to generous support of the governmentsof Germany, Switzerland and Austria, the Fund has announced today.

The objective of MIDF is to stimulate the market functioning when it comes to municipalfunding so that long-term sustainability of services which municipalitiesprovide in the West Balkans would be supported.

Apart from that, the Government of Austria will provide municipalities withtechnical assistance in funding and project preparation and implementation.