EBRD supports green housing finance in Montenegro

• EBRD providing a €20 million mortgage loan and a €4 million GEFF III loan to Hipotekarna Banka in Montenegro
• Mortgage facility will expand access to housing finance, with at least 10 per cent of proceeds supporting green residential buildings
• First-ever GEFF financing for Hipotekarna Banka will support construction energy-efficient residential buildings and other green housing investments

The European Bank for Reconstruction and Development (EBRD) is strengthening access to housing finance and accelerating the green transition of Montenegro’s residential sector with a financing package of up to €24 million for Hipotekarna Banka, one of the country’s leading banks. The package consists of a €20 million mortgage loan and a €4 million loan under the EBRD’s Western Balkans Green Economy Financing Facility (GEFF III).

The mortgage loan is the EBRD’s third housing finance facility for Hipotekarna Banka and follows the successful utilisation of a previous mortgage loan extended in 2024. This new financing will help the bank to further increase its long-term residential mortgage lending to private individuals, improving access to home ownership and supporting the development of Montenegro’s housing finance market.

In a new feature of the programme, Hipotekarna Banka will seek to allocate at least 10 per cent of the mortgage loan to investments meeting the EBRD’s Green Economy Transition (GET) criteria, supporting the purchase of energy-efficient homes and residential buildings.

Alongside the mortgage loan, the EBRD is providing its first-ever GEFF III facility to Hipotekarna Banka. The €4 million loan will support investments in high-performance residential buildings and energy-efficiency and renewable-energy measures in the residential sector. The facility will help to increase the stock of green apartments in Montenegro, particularly in Podgorica, while helping households to benefit from lower energy consumption and reduced utility costs.

Ekaterina Solovova, Head of the EBRD in Montenegro, said: 'This financing package with Hipotekarna Banka will help more people in Montenegro access quality housing while also encouraging investment in energy-efficient homes and residential buildings. By combining mortgage lending with green finance, we are supporting both the growth of the housing market and the country's transition to a more sustainable, low-carbon economy. We are pleased to deepen our longstanding partnership with Hipotekarna Banka and build on the strong demand demonstrated by our previous cooperation.'

Nikola Špadijer, President of the Management Board of Hipotekarna banka said: “The €20 million credit line approved by the EBRD for Hipotekarna banka represents the third phase of our successful cooperation in housing finance and is a strong testament to the mutual trust we have built. Behind every housing loan are plans, families and people’s desire to create a home of their own. This is why it is particularly important to us that, through this arrangement, we will be able to provide our clients with long-term housing loans at favourable interest rates, helping them take one of the most important steps in their lives. The continuation of our partnership with the EBRD, further strengthened by the new GEFF financing, reflects the confidence this international institution has placed in us. At the same time, it motivates and encourages us to continue developing this segment of our business responsibly and sustainably, while supporting more energy-efficient and greener housing solutions, in line with the needs of our clients.”

The GEFF III loan forms part of the EBRD’s wider efforts to support the decarbonisation of residential buildings across the Western Balkans. All proceeds will be used to finance GET-compliant investments, and eligible borrowers may also benefit from technical assistance and investment incentives supported by the European Union through the Western Balkans Investment Framework and the government of Japan.

Hipotekarna Banka is a longstanding partner of the EBRD, having worked with it since 2012. Most recently, the EBRD provided a €10 million mortgage loan to Hipotekarna Banka in 2024, which was fully utilised within one year, demonstrating strong demand for housing finance in Montenegro and the bank’s ability to deliver mortgage products at scale.

This new financing package supports the EBRD’s strategic priorities in Montenegro by deepening the financial sector, expanding access to housing finance and promoting investment in greener, more energy-efficient housing.

The EBRD is a leading institutional investor in Montenegro, having invested over €1 billion in 114 projects across the country since it began operating there in 2006. The Bank’s priorities in Montenegro include strengthening competitiveness, supporting the transition to a green economy and fostering further integration into regional and global markets.