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EBRD supports small businesses in Montenegro
The European Bank for Reconstruction and Development is supporting the growth and development of small and medium-sized enterprises in the Union of Serbia and Montenegro with a €4.48 million financing package to Euromarket Banka a.d., (EB), a privately owned bank in the Republic of Montenegro.
The EBRD's €3 million loan will provide small business entrepreneurs in Podgorica, Montenegro's capital city, with access to finance to expand their businesses. The Bank's €1.48 million equity investment will support EB's plans to expand its branch network, introduce up-to-date banking systems, strengthen its capital base and improve competitiveness.
Kurt Geiger, Business Group Director for Financial Institutions at the EBRD, said the loan to Euromarket Banka is crucial for strengthening Montenegro's real economy. He said small businesses are the driving force for reform, and that these entrepreneurs will help strengthen the private sector in Montenegro. Mr Geiger added that the bank's commitment to expand to support more entrepreneurs is a positive step, and the EBRD's stake should help the bank to achieve that goal.
Euromarket Banka, established in 2000, is one of four commercial banks that form the core of the Montenegrin banking sector. The bank is fully owned by foreign investors, including the Soros Development Fund, the German Investment and Development company, DEG, Futura Investments and Raiffeisen Banka, Sarajevo .
Branimir Pajkovic, Chief Executive Officer of Euromarket Banka, said the EBRD's loan and equity investment will help the bank support the development of small businesses in Montenegro. Mr Pajkovic added that as well as strengthening the small business sector, Euromarket Banka has aspirations to grow to become a stronger and more efficient bank within Montenegro, and the EBRD's stake helps achieve this.
The EBRD's financing package is the Bank's second project with EB. In January 2002, a €1 million facility was signed under the Bank's Trade Facilitation Programme, to provide guarantees for import and export-related transactions.
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