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EBRD, EAR and Cacanska Banka support SMEs in Serbia
Cacanska Banka becomes first bank under new Western Balkans Framework
Cacanska Banka in Serbia is the first bank to receive a loan under the EBRD’s
latest facility supporting small and medium-sized enterprises (SMEs) across
western Balkan countries. The €5 million will help the bank boost local
entrepreneurs’ access to finance to launch or expand their businesses, helping
to strengthen Serbia’s private sector and fuel economic development.
The €50 million Western Balkans Framework Facility makes loans to partner
banks and leasing companies, which, in turn, extend loans to SMEs. Technical
cooperation is also provided by the European Agency for Reconstruction
(E.A.R.) to help banks upgrade, among other things, their SME risk appraisals.
The facility aims to support this region in its transition to a market economy
by strengthening the financial sector and by increasing SMEs’ access to
finance via local banks and leasing companies.
Under a separate programme, the EBRD is supporting Cacanska Banka’s trade
activities with up to €1 million under its Trade Facilitation Programme, which
supports trade to, from and within the Bank’s 27 countries of operations.
Dragica Pilipovic, Director for Serbia and Montenegro at the EBRD, said
Cacanska Banka, with its ambitions to strengthen its SME business, is a good
EBRD partner. Both banks strongly support entrepreneurs, which are so crucial
to economic development, said Ms Pilipovic. By working with banks like
Cacanska Banka, together we are helping to strengthen this sector in Serbia,
she added.
The EBRD loan is being complemented with technical assistance funds from
E.A.R. to support staff training and to ensure successful implementation of
the loan. Adriano Martins, Head of the E.A.R.’s Belgrade office, said the
Agency’s support for the SME sector has been strong and it will continue to be
so for the foreseeable future.
Established in 1956, Cacanska Banka serves clients mostly in central Serbia, a
region with a high concentration of SMEs and entrepreneurs. The bank has its
headquarters in Cacak with 15 branches and offices in central Serbia and
Belgrade.
Dragan Jovanovic, deputy General Manager of Cacanska Banka, said expanding
business with the SME sector is an important part of Cacanska’s strategy.
Cacanska Banka is very pleased to be working with the EBRD for the first time,
supporting its SME and trade finance operations. Cacanska Banka is also
grateful for the assistance of the European Agency for Reconstruction in this
project.
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