The EBRD is providing a €10 million loan to Société Générale Banka Montenegro for financing of long-term residential mortgages to individuals in Montenegro. The funds will be used for on-lending to private borrowers at a time when access to finance remains restrained and continued lending is important for the recovery of the domestic housing loans market.
The loan is being provided under the Western Balkans and Croatia Financing Framework aimed at improving financial intermediation and supporting banks and non-bank financial institutions in extending finance to the private sector, including support for mortgage financing. Supporting the development of quality and affordable residential real estate sector is one of the goals of the EBRD’s Strategy for Montenegro.
Société Générale Banka Montenegro, a subsidiary of French banking group Société Générale, is the third largest commercial bank in the country by total assets with the network of 20 branches. The EBRD has previously extended two loans to the bank in Montenegro successfully.
Giulio Moreno, EBRD head of office in Podgorica, said: “We welcome this agreement because it serves very important purposes. It facilitates access to housing loan financing for an average individual or family in Montenegro, but also supports the recovery of the residential real estate market and related industries. New lending activities in Montenegro are particularly important during the economic recovery to set the country back on the path of steady and sustainable growth.”
Mrs Branka Pavlovic, CEO of Société Générale Banka Montenegro added: “We are very pleased to continue our cooperation with the EBRD. After successful previous projects in supporting small and medium enterprises (SMEs) we have decided to extend our commitments towards Montenegrin citizens in their accession to real estate ownership. In addition to this objective, with this project Société Générale Montenegro is also contributing to the recovery of the country’s economy, particularly in the real estate sector.”
Since the beginning of its operations in Montenegro the EBRD has committed almost €400 million in some 40 projects, generating more than €800 million of investment in the country. EBRD investments cover the whole range of Montenegro’s economy.