Bank channels funds through country’s leading microfinance institution Alter Modus
The EBRD and Alter Modus, the largest non-bank microfinance institution in Montenegro, are joining forces to improve access to finance for the country’s micro-sized and small businesses.
The EBRD is providing a new €5 million loan to Alter Modus for on-lending to micro-sized and small firms, in particular outside the capital, Podgorica. Such companies are often overlooked by commercial banks, given the risks, costs and regulatory-capital considerations.
Greater access to finance will encourage new lending, boost businesses, help generate employment and contribute to further expansion of the private sector, including in less-developed areas.
Jaap Sprey, Head of the EBRD’s office in Montenegro, said: “Small businesses are the backbone of any economy. Non-bank institutions such as Alter Modus play a vital role in providing much-needed finance to micro-sized and small enterprises and contribute to solid economic development.”
According to the EBRD’s latest economic forecast, the Montenegrin economy will grow by 3.7 per cent this year and 3.3 per cent in 2018.
The Bank is a leading institutional investor in Montenegro. To date it has invested €530 million in over 50 projects in the country. Its investments aim to make the local economy more competitive, integrated and green.