- €5 million financing to support SMEs facing impact of coronavirus pandemic
- Loan to provide liquidity to help businesses in post-lockdown recovery phase
- First EBRD transaction signed under Solidarity Package in Montenegro
Small and medium sized enterprises (SMEs), the backbone of the local economy in Montenegro, will benefit from a €5 million loan provided by the European Bank for Reconstruction and Development (EBRD) to Hipotekarna Banka for on-lending to clients hit by the economic impact of the coronavirus pandemic.
This is the first project to be signed in the country under the EBRD’s coronavirus Solidarity Package, which was set up to meet the immediate short-term financing needs of existing clients following the sharp slowdown of economic activities.
Following the introduction of public health measures to prevent the spread of the virus, many companies have experienced a decrease in turnover and profitability leading to payment delays and an urgent need for liquidity. The EBRD is helping to address these challenges with financing and advisory support, expecting to invest up to €1.7 billion in the six countries of the Western Balkans in 2020 alone.
Hipotekarna Banka is a long-term client of the EBRD with successful cooperation since 2012. Hipotekarna Banka has taken a proactive approach to respond to the challenges raised by the pandemic, providing funds to help its clients and support economic recovery in Montenegro.
The EBRD is a leading investor in Montenegro. Since it began investing in Montenegro in 2006, the EBRD has financed 71 projects worth €622 million in the country.