- EBRD lends RSD 2.3 billion (€20 million) local-currency to OTP Bank AD Novi Sad
- New finance is for on-lending to the Serbian SME sector
- Credit line to strengthen SME access to local-currency financing
The European Bank for Reconstruction and Development (EBRD) is extending a loan of RSD 2.3 billion (equivalent to €20 million) to OTP banka Serbia AD Novi Sad for on-lending to small and medium-sized businesses (SMEs) in Serbia. The credit line will bolster lending to private businesses in the form of working capital lines and investment loans, in particular, to SMEs operating in economically less-developed areas of the country.
The credit line will support the post-pandemic recovery of Serbia’s economy and strengthen its resilience in the medium and long term. It will further increase SME access to local-currency loans in Serbia, where euro loans account for more than 60 per cent of the banking sector’s loan portfolio.
Aleksandra Vukosavljević, EBRD Director, Financial Institutions, Western Balkans and Eastern Europe, said: “We are very eager to start our cooperation with OTP banka Serbia and to jointly support Serbian small businesses. We are particularly pleased that we are signing a credit line in local currency, as it will help strengthen confidence in the financial system.”
Predrag Mihajlović, CEO and president of the Executive board of OTP banka Serbia stated: “In accordance with our leading position in Serbia in terms of lending to retail and corporate sector, we are strongly supporting SMEs and small businesses as a backbone of the economy. I believe that newly signed credit line with EBRD will enhance our further cooperation and financing of SME sector in Serbia.”
Branimir Spasić, CFO and member of the Executive board of OTP banka said: ”OTP banka is strategically supporting SME companies, as proven by this signing today. We will continue to explore more possibilities in order to provide better access to financing to both SMEs and small business clients”.
With its wide regional outreach and focus on SMEs, OTP Bank Serbia AD Novi Sad has the potential to provide much-needed financing to smaller businesses and contribute to the development of SME sector across the country.
The EBRD is a leading institutional investor in Serbia. The Bank has invested more than €6.9 billion in 296 projects in the country to date. The Bank’s focus in Serbia is on private-sector development, improving public utilities and facilitating the country’s transition to a green economy.