The EBRD is further increasing the availability of financing to micro, small and medium-sized enterprises (MSME) in Serbia with a €30 million credit line to ProCredit Bank Serbia.
ProCredit Bank Serbia is a leading institution for financing MSMEs and agricultural producers in the country, with a broad regional network, offering universal banking services.
Although small companies represent the main source of private sector employment in Serbia and are major contributors to the country’s economy, MSMEs and entrepreneurs still face limited access to financing for their development and growth.
ProCredit Bank Serbia will use the proceeds of the EBRD loan to support MSMEs operating in production, services trade or agriculture sectors with sub-loans estimated at around €5,500 on average. The project will thus contribute to deepening the financial intermediation in Serbia and strengthening the banking sector while increasing credit availability to smaller entrepreneurs.
“We are pleased to continue our cooperation with ProCredit Bank Serbia and to support a continuous flow of funding to Serbian SMEs, particularly at a time when availability of financing remains constrained,” said Henry Russell, EBRD Director for Small Business Finance.
“In a decade of our operations in Serbia, more than 280,000 clients recognised our commitment to responsible banking. This credit line will certainly enable us to further improve our efforts in providing the SME sector with credit products designed to meet their specific needs,” said Borislav Kostadinov, Chairman of the Board of Directors of ProCredit Bank Serbia.
Since the beginning of its operations in Serbia, the EBRD has committed around €2.8 billion in various sectors of the country’s economy, with a total value of some €6 billion.