EBRD, EU launch portfolio risk-sharing facility to expand lending to underserved businesses in Serbia

• EBRD and EU launch portfolio risk-sharing facility in Serbia at an event in Belgrade
• Initiative is co-funded by the European Union through its EFSD+ guarantee programme
• Facility will help local banks unlock lending to micro, small and medium-sized enterprises in a risk-sound and capital-efficient manner

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have launched a new portfolio risk-sharing facility designed to improve access to finance for micro, small and medium-sized enterprises (MSMEs) in Serbia.

The portfolio risk-sharing facility forms part of the EBRD’s broader efforts to expand its support to MSMEs with new portfolio guarantee solution to support inclusive private-sector growth and strengthen access to finance across the Western Balkans.

The initiative is co-funded by the EU through its European Fund for Sustainable Development Plus (EFSD+) guarantee programme.

Through the facility, the EBRD provides participating financial institutions with an unfunded and uncapped risk-sharing guarantee covering up to 50 per cent of the credit risk on new loans. By sharing a portion of the risk, the facility helps to reduce barriers to lending and enables banks to expand financing to MSMEs, which often face difficulties accessing credit because of limited collateral or insufficient operating history.

The facility specifically targets underserved segments of the business community, including women- and youth-led enterprises, as well as businesses operating in less-developed regions. By increasing access to finance, the programme is expected to support business investment, job creation and private-sector development across Serbia.

In addition to supporting entrepreneurs and small businesses, the risk-sharing facility strengthens the capacity of local financial institutions to extend lending using their own resources. This contributes to a more resilient financial sector and unlocks additional financing opportunities for Serbia’s economy.

Francis Malige, EBRD Managing Director for Financial Institutions, said: “The launch of the portfolio risk-sharing facility in Serbia marks an important step towards broadening access to finance for small businesses that have traditionally found it difficult to obtain credit. By sharing risk with local partner banks and combining innovative financial instruments with support from the EU, we can help more entrepreneurs invest, grow and create jobs.”

Mauro di Veroli, Head of Cooperation at the EU Delegation to Serbia, said: “The EU is committed to supporting the development of a dynamic and competitive private sector in Serbia through reforms, financial support and capacity building. Thanks to the EU-backed guarantee programme, we are helping local financial institutions expand lending to smaller businesses, including those operating in underserved segments and regions, enabling them to invest, innovate and contribute to sustainable economic growth.”

Banca Intesa Beograd and ProCredit Bank Serbia are among the participating financial institutions through which eligible Serbian businesses can access financing under the programme. Additional participating financial institutions will be announced soon as the facility expands.

Representatives of the two banks and members of their Executive Boards, Predrag Milenović and Igor Anić, highlighted the excellent results that this new instrument has achieved in the market and agreed that such a mechanism for supporting the economy is beneficial, with significant interest from small and medium-sized enterprises.

The EBRD is a leading institutional investor in Serbia. To date, it has invested more than €11 billion in the country, with the majority of investments supporting private-sector competitiveness, sustainable infrastructure and the green transition.