€10 million EBRD GEFF loan to 3 Banka microfinance bank in Serbia

• Loan extended under Western Balkans GEFF programme
• Credit line supported by donors through technical cooperation and incentive grants
• Project promotes energy efficiency in residential sector

The European Bank for Reconstruction and Development (EBRD) and 3 Banka, Serbia’s only microfinance bank, have signed a second loan agreement under the Western Balkans Green Economy Financing Facility (GEFF), further strengthening support for green investments in the country’s residential sector.

The new €10 million loan will be lent on by 3 Banka to provide financing for energy efficiency and renewable energy projects in privately owned houses and apartment buildings. The facility is designed to help Serbian households and housing associations to invest in energy-saving technologies and sustainable solutions, contributing to the country’s transition to a low-carbon economy.

Upon successful completion of their investments, sub-borrowers will be eligible for a grant of up to 20 per cent of their individual sub-loan.

Aleksandra Vukosavljevic, the EBRD’s Director, Financial Institutions, Western Balkans and Eastern Europe, said: “We are delighted to deepen our partnership with 3 Banka and continue supporting Serbia’s efforts to build a greener, more sustainable future. This new loan will help unlock further investments in energy efficiency and renewable energy, benefiting households and communities across the country.”

Vladimir Vukotić, the CEO of 3 Banka, said: “For two decades, 3 Banka has been committed to a triple bottom line approach, focusing on success in three key areas: People, Planet and Prosperity. Initially, our primary aim was to enhance the economic and social conditions in Serbia, responding to the immediate needs of the communities we serve. With support from the EBRD, our funding over the past two years has significantly advanced our environmental initiatives. We have assisted over 3,000 households and have prevented more than 2,000 tonnes of greenhouse gas emissions each year.”

The EBRD’s GEFF programme for the Western Balkans is co-funded by the European Union (through the Western Balkans Investment Framework), Austria, Japan and Denmark, as well as receiving funding from Austria and Switzerland through the EBRD’s High-Impact Partnership on Climate Action (HIPCA)*.

The programme helps to improve the energy efficiency of the region’s residential sector, which is one of its biggest energy consumers. So far, around 23,500 households in the Western Balkans have benefited from GEFF financing, allowing them to improve the energy efficiency of their homes.

* HIPCA is supported by Austria, Canada, Finland, Germany, the Netherlands, South Korea, Spain, Switzerland, the TaiwanICDF, the United Kingdom and the United States of America.