The European Commission announced that over €300 million will be made available to innovative and high-potential small and medium size companies (SMEs) in the Western Balkans, and to create a regional venture capital market that will facilitate their emergence and growth. The funding will be mobilised through the Western Balkan Enterprise Development and Innovation Facility (WB EDIF).

The Western Balkan Enterprise Development and Innovation Facility (WB EDIF) will mobilise over €300 million to innovative and high-potential small and medium size companies (SMEs) in the Western Balkans, and to create a regional venture capital market that will facilitate their emergence and growth. In August 2012, the EBRD announced its support to SMEs in Bosnia and Herzegovina with a €10 million credit line.

In particular, this new scheme WB EDIF includes four components aiming at early to development stages equity financing in innovative SMEs; provision of development and expansion capital to established high-growth potential SMEs; improvement of SME access to bank lending and lowering the cost of borrowing by providing SME loan portfolio guarantees to financial intermediaries; creation of a favourable regulatory environment for innovative and high-potential SMEs; and supporting beneficiary governments in implementation of priority reforms.

This scheme is organised back-to-back with the Steering Committee of the Western Balkan Investment Framework (WBIF) hosted by the Council of Europe Development Bank (CEB). Its initial capital of €145 million has been pulled together by the European Commission, the European Investment Bank (EIB), the European Investment Fund (EIF), the European Bank for Reconstruction and Development (EBRD), and beneficiaries as well as bilateral donors. The European Commission, with €65.6 million, provides the largest share of the capital.