Project description
and objectives:
|
Formerly Microfinance Bank Serbia, ProCredit Bank Serbia (PCB) was established
in April 2001 to provide financial services to micro and small enterprises
(MSEs) in Serbia.
In 2002, 2004 and 2005, the EBRD participated in the capital increases of PCB
in order to enable it to further expand its lending activities to MSEs in
Serbia. This latest project demonstrates the EBRD’s continued support for
PCB’s development and for MSE financing in Serbia.
By providing permanent access to financial services for MSEs throughout
Serbia, the project will directly support private sector development. It will
also have a strong demonstration effect, encouraging other Serbian banks to
enter this market segment and follow sound banking principles.
|
Transition impact:
|
The proposed project is expected to have a significant impact on the
transition process. PCB will continue to provide support to MSEs that would
otherwise have little or no access to formal sector finance. PCB also supports
the development of the financial sector by operating as a best practice
institution committed to the principles of complete transparency and strong
corporate governance.
|
The client:
|
PCB was established in April 2001 by the EBRD, together with the IFC, KfW,
FMO, Commerzbank and ProCredit Holding with a total equity capital of USD 6
million. Since it began operating , PCB has expanded its lending activities to
27 cities across Serbia. Further regional expansion is planned in 2006-2007.
As of June 2006 PCB had disbursed over 98,000 loans to MSEs worth nearly EUR
550 million. The outstanding loan portfolio consisted of 70,072 loans worth
EUR 252 million.
|
EBRD finance:
|
To date, the EBRD has invested EUR 3.6 million for an equity stake in PCB, and
provided EUR 14 million in MSE credit lines (EBRD share).
PCB proposes a capital increase for a total of EUR 15 million, whereas the
EBRD intends to participate in proportion to its current 16.67% shareholding,
i.e. EUR 2.5 million.
.
|
Total project cost:
|
Total project cost will be up to EUR 15 million.
|
Environmental impact:
|
The project has been screened FI.
EBRD reviewed satisfactorily environmental, health and safety reports provided
by PCB since 2002.
PCB will be required to continue to implement the Bank’s Environmental
Procedures for Small and Micro Loans. In addition, PCB will be required to
continue to submit to the Bank annual environmental, health and safety report
on performance of its projects funded by the Bank.
|
Technical
cooperation:
|
Technical cooperation funding has been provided by US/EBRD SME Financing
Facility as well as KfW, FMO and DOEN. No further TC funding is expected to be
made available for this project by EBRD.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
Company contact:
|
Dörte Weidig, General Director
ProCredit Bank a.d.
Head
Office
Bulevar despota Stefana 68c
11000 Belgrade, Serbia
Tel +381 11 20 77 991
Fax +381 11 20 77 905
E-mail d.weidig@procreditbank.co.yu
Web site www.procreditbank.co.yu
|
EBRD contact:
|
Walid Fayad, Operation Leader: fayadw@ebrd.com
|
Business opportunities:
|
For business opportunities or procurement, contact the client company.
|
General enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
