EBRD and Raiffeisen Bank Serbia expand financing for Serbian MSMEs under EU-backed scheme

• EBRD provides €35 million portfolio risk-sharing facility to Raiffeisen Bank Serbia
• Facility to support up to €70 million in new financing for micro, small and medium-sized enterprises
• Backed by the European Union through the European Fund for Sustainable Development Plus

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are strengthening access to finance for businesses in Serbia  by providing a new risk-sharing facility to Raiffeisen Bank Serbia that will help to unlock up to €70 million in fresh financing for micro, small and medium-sized enterprises (MSMEs).

Under the arrangement, the EBRD will provide a €35 million unfunded portfolio guarantee covering 50 per cent of the credit risk on a newly generated portfolio of MSME loans originated by Raiffeisen Bank.

Backed by technical assistance and a first-loss counter-guarantee from the EU’s European Fund for Sustainable Development Plus (EFSD+) Growth for All programme, the initiative will target underserved businesses – including those led by women and young people – and small firms operating in tourism, agriculture and rural areas. By sharing a portion of the risk, the facility will help to reduce barriers to lending and enable banks to expand financing to MSMEs, which often face difficulties accessing credit because of limited collateral or insufficient operating history.

Aleksandra Vukosavljević, EBRD Director for Financial Institutions, Western Balkans and Eastern Europe, said: “MSMEs are a cornerstone of Serbia’s economy, yet many still face significant barriers to accessing finance. Through this innovative risk-sharing facility, the EBRD and Raiffeisen Bank Serbia will help to unlock new lending for businesses across the country, including those led by women and young entrepreneurs, and those operating outside the capital. The facility will also support investments in greener technologies and business practices, helping companies to grow, innovate and become more resilient.”

Zoran Petrović, Chairman of the Executive Board of Raiffeisen Bank Serbia said: “Small and medium-sized businesses are essential to Serbia’s economic development, and supporting their growth is one of our strategic priorities. Our continued partnership with the EBRD and the European Union allows us to expand access to financing, particularly for entrepreneurs and businesses that face additional challenges in securing funding. We want to help more companies turn their ideas into investments, strengthen their competitiveness and build sustainable businesses for the future.”

The EBRD has invested more than €11.3 billion in Serbia to date through 423 projects. Its investments focus on sustainable infrastructure, private-sector competitiveness, the green economy transition and financial-sector development.