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- EBRD unfunded portfolio guarantee of up to €25 million to Crnogorska komercijalna banka (CKB) in support of local micro, small and medium-sized enterprises (MSMEs)
- Facility will help CKB to extend support to larger number of MSMEs
- Project backed by the European Union through its EFSD+ guarantee programme
Micro, small and medium-sized enterprises (MSMEs) in Montenegro are set to gain better access to finance thanks to a new partnership between the European Bank for Reconstruction and Development (EBRD) and Crnogorska komercijalna banka (CKB), supported by the European Union (EU).
Under the agreement, the EBRD will provide CKB with an unfunded risk-sharing guarantee of up to €25 million, paving the way for up to €50 million in new SME lending through the EBRD’s portfolio risk-sharing (PRS) product. The guarantee will cover up to 50 per cent of the credit risk on new loans issued by CKB, significantly reducing barriers for businesses seeking growth capital.
The initiative is backed by technical assistance and a first-loss counter-guarantee from the EU’s European Fund for Sustainable Development Plus (EFSD+) programme and it is the first PRS facility in Montenegro extended by the EBRD. It targets underserved businesses, such as those led by women and young entrepreneurs, and rural MSMEs, aiming to foster inclusive economic development.
By sharing part of the risk, the EBRD and EU are helping CKB to strengthen its resilience and expand lending using its own resources. This approach combines innovative financial instruments with targeted support to unlock new opportunities for Montenegro’s private sector.
Remon Zakaria, EBRD Head of Montenegro, said: “This collaboration with CKB, supported by the European Union, marks a significant milestone in our efforts to expand access to finance for underserved businesses in Montenegro. By sharing risk and combining innovative financial instruments with targeted technical assistance, we are enabling more SMEs to invest in growing their businesses.”
Bernard Brunet, Head of Cooperation at the Delegation of the European Union to Montenegro, commented: “The EU is determined to support inclusive economic development in Montenegro. By providing guarantees, the EU aims to support new or innovative projects of women entrepreneurs, young entrepreneurs and MSMEs seeking finance from Crnogorska komercijalna banka. The perspective of Montenegro’s accession to the European Union in the near future creates new opportunities for entrepreneurs and we expect that these EU guarantees will spur new projects. We are proud that our longstanding partnership with the EBRD in Montenegro allows the EU to work closely with local banks, in a joint effort to support the development of the private sector”.
Tamás Kamarási, Chair of the Management Board at CKB, said: “Our collaboration with the EBRD and the European Union represents a landmark achievement for CKB and Montenegro’s financial sector. By being the first bank in the country to introduce the portfolio risk-sharing instrument, we reaffirm our commitment to innovation and to empowering micro and small enterprises. This facility strengthens our ability to channel financing where it is most needed, fostering resilience and sustainable growth across the economy. We greatly value the trust and partnership of the EBRD and EU in advancing this shared vision.”
The EBRD is a leading institutional investor in Montenegro, with more than €1 billion invested through supporting the country’s sustainable development, infrastructure, private-sector growth and regional integration.