22 September 2020 has marked an opening of the first overseas office of the International Development Finance Corporation (“DFC”), America’s development bank, in Serbia’s capital Belgrade. This is one of the first steps following the political agreement signed in Washington on 4 September 2020, as well as letters of interest that Serbia recently signed with DFC and Export-Import Bank of the United States (EXIM).
DFC is the U.S. federal agency formed in 2019, based on the the Better Utilization of Investments Leading to Development (BUILD) Act. It brings together the capabilities of OPIC and USAID’s Development Credit Authority with a range of innovative financial products that bring private capital to the emerging markets. It is primarily responsible for providing and facilitating the financing of private development projects, with the lending capacity of $60 billion. The DFC’s financing tools include loans, loan guarantees, equity placements, technical assistance and insurance for development projects across sectors such as energy, healthcare, critical infrastructure and technology. DFC also provides financing for small businesses and entrepreneurs. DFC investments adhere to high standards and respect the environment, human rights, and worker rights. Its activities complement the work of U.S. Government aid programs.
Serbian Government has announced that it expects the first economic effects of the DFC’s entry in the region to be visible in the next months already.