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EBRD acquires 25% in Serbia's Cacanska Banka
Investment to promote growth, prepare for full privatisation
The EBRD is acquiring a 25 per cent stake in Cacanska Banka, a majority
state-owned bank in Cacak, central Serbia, to help boost its growth plans.
As well as fuelling the bank's capital to reach out to more small and
medium-sized enterprises (SMEs) through a larger regional presence, the EBRD’s
investment aims to help develop the bank into a modern, efficient institution
in an increasingly competitive financial market. This will be achieved through
the implementation of an Institution Building Plan, developed in cooperation
with the management of Cacanska Banka, as well as the government, which is a
shareholder, to help raise corporate governance standards to international
levels, strengthen control processes and credit and risk management
procedures, train staff, and improve customer services.
Dragica Pilipovic-Chaffey, EBRD Director for Serbia, said that this investment
is part of an EBRD strategy to strengthen the financial sector in Serbia.
Furthermore, it will support regional development in the country by improving
access to finance to SMEs in the regions outside Belgrade. The EBRD will work
with the Serbian government, the other minority shareholders and the
management of Cacanska Banka towards a full privatisation of the bank, she
added.
Established in 1956, Cacanska Banka is a leading regional bank which focuses
primarily on financing small and medium-sized enterprises in central Serbia,
through a network of 17 branches and offices in the region and Belgrade.
The EBRD investment builds on the successful existing cooperation with
Cacanska Banka, when in 2005 it became the first bank in Serbia to receive a
loan under the EBRD’s facility supporting SMEs across western Balkan
countries. The credit line of €5 million is helping to boost local
entrepreneurs’ access to finance to launch or expand their businesses.
The EBRD is one of the largest investors in Serbia, having committed more than
€990 million in 64 projects.
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