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EBRD supports micro and small businesses in Montenegro
€3 million loan to support growth of crucial sector
Entrepreneurs in Montenegro will have access to more finance following a €3 million loan from the EBRD to Podgorica-based Opportunity Bank A.D. Through the bank’s branch network across Montenegro, the funds will be on-lent to micro, small and medium-sized business owners across the country who wish to expand their businesses.
The loan is being provided under the US/EBRD SME Financing Facility, a $150 million fund consisting of $50 million from the US Government and $100 million from the EBRD to support the growth of small enterprises in Albania, Bosnia & Herzegovina, Bulgaria, Georgia, Kazakhstan, Kosovo, the Kyrgyz Republic, FYR Macedonia, Romania, Serbia & Montenegro, Tajikistan and Ukraine. Through a variety of banks, the facility has already backed more than 210,000 loans worth $1.2 billion in those countries.
Elizabeth Wallace, the EBRD’s Director for Small Business, said entrepreneurs play a critical role in promoting economic development, and owners of micro and small businesses have proven to be dynamic and reliable partners in the Bank’s existing programmes in southeast Europe. Ms. Wallace added that as well as supporting local entrepreneurs, the EBRD’s cooperation with Opportunity Bank should help to further demonstrate to the Montenegrin banking sector the viability of financing micro and small businesses.
Keith Flintham, Chief Executive Officer of Opportunity Bank, said he is pleased that through this project the EBRD has demonstrated its confidence in Opportunity Bank. Mr. Flintham added that this new loan will enable the Bank in Montenegro to provide further financial assistance to the micro, small and medium-sized business sectors, which are a major priority for Opportunity Bank.
Under the facility, “micro” loans are available up to $10,000 (or the equivalent in euro), with a two-to 24-month maturity. “Small” loans of up to $50,000 (or the equivalent in euro) are made available with a maturity from three to 36 months. Additionally, up to 20 per cent of the facility can be used to finance loans of up to $250,000 with a three- to 48-month maturity. All loans are extended on a commercial basis.
Dragica Pilipovic, Director of the EBRD’s Resident Office in Serbia & Montenegro, said the Bank will continue to support entrepreneurs across the region because such grass-roots businesses are important building blocks for economic stability.
The EBRD, through its micro and small-sized enterprise programmes, has disbursed more than $3.3 billion in over 490,000 loans in 18 countries.
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