Belgrade - Serbia and the European Investment Bank (EIB) Monday in Belgrade signed a 250 million euro (341 million dollars) credit intended to support the Balkan country's small and medium-sized enterprises.

EIB, the European Union's investment arm, and Serbia also signed a new agreement setting up the framework for EIB's activity in Serbia.

The credit agreed Monday is the first in a series of operations that expected to reach more than 1.4 billion euros in 2009-10 planned as support of Serbian economic recovery and helping its European integration.

"Our commitment in 2009 and in the years to come will help Serbia to combat the recession and make a swifter recovery, thereby adding greater weight each day to that country's plans of nurturing closer ties with the European Union," said EIB Vice President Dario Scannapieco.

Serbia has emerged from deep isolation of the 1990s after Slobodan Milosevic's hard-handed regime fell in 2000. But the country has so far failed to reform sufficiently to open a clear path to EU membership that the majority of its population wants. (dpa)