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EBRD facility helps entrepreneurs in Serbia
Privredna Banka joins EBRD’s Trade Programme
Importers and exporters in Serbia will have more opportunities to finance
their foreign trade business under a €2 million trade finance line granted by
the EBRD to Privredna Banka, a small to medium-sized commercial bank in
Serbia. The facility will be used for guarantees in order to support trade in
the region.
This is the fifth line that EBRD’s Trade Facilitation Programme (TFP) has
signed so far with issuing banks in Serbia and is expected add to the success
of trade facilities that have already been put in place in the region.
The agreement with Privredna Banka is a demonstration of EBRD’s continued
commitment to working with good local banks in order to extend the trade
transactions of their clients, said Kurt Geiger, EBRD Director for Financial
Institutions.
The financing is extended under the EBRD’s Trade Facilitation Programme (TFP),
which promotes foreign trade with countries within Eastern Europe and the CIS
region. Through the programme, the Bank provides guarantees to international
confirming banks. The programme can guarantee any genuine trade transaction
associated with exports from, or imports to, the EBRD's countries of
operations. More than 107 issuing banks in the region participate in the
programme together with more 640 confirming banks globally. Since it began in
1999, the programme has facilitated 6,250 trade transactions worth a total
€3.1 billion.
Since 1999, the EBRD has facilitated trade in Serbia through four banks,
financing more than 370 foreign trade transactions with exporters and
importers in 35 countries. The Bank’s guarantees have covered a trade volume
of €40 million, including imports of consumer goods and households from China,
South Korea, Turkey; electrical equipment from Belgium and food products from
Spain and Italy.
The Trade Facilitation Programme in Serbia is being strongly supported by
risk-sharing funds provided by Austria, the Netherlands, Norway and
Switzerland. Local banks participating in this programme have also benefited
from the EBRD´s trade finance training and advisory services, funded by
Ireland and Sweden.
Privredna Banka is a small to medium-sized commercial bank based in Belgrade.
Founded in 1973, Privredna Banka today provides a wide range of products and
services, with a specific focus on retail banking and SMEs.
This agreement forms an important part of our cooperation with international
financial institutions, which will be enhanced in the future, said Cedo
Petrovic, CEO of Privredna Banka.
The EBRD is one of the largest investor in Serbia, so far having committed
almost €1.1 billion in 69 projects.
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