MSME Financing Framework for Western Balkans & Croatia



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

16 May 2006



PSD disclosed:

13 Apr 2006

Project Description

The EUR 75 million framework builds on the positive experience of the existing Western Balkans SME Finance Framework and aims at broadening the outreach of financial institutions in Albania, Bosnia and Herzegovina, FYR Macedonia, Serbia and Montenegro (together the “Western Balkans”) and Croatia towards smaller business clients and micro businesses in particular, while helping improve financial intermediation and strengthening competition in the financial sectors of these countries. Specifically, the new framework will include debt facilities to partner commercial banks, leasing companies and non-bank microfinance institutions (“NBMFIs”) for on-lending and leasing transactions in favour of micro, small and medium enterprises (“MSMEs”). In addition, the framework will include equity investments in selected financial intermediaries and guarantees to NBMFIs for borrowing from local commercial banks. In Croatia the Framework will primarily aim at supporting NBMFIs.

Transition Impact

The facility will support the financial sectors in Western Balkans and Croatia through a combination of debt and equity financing and will promote adherence to best practices in corporate governance and strengthen financial discipline. The facility is aimed at improving financial intermediation specifically in favour of the MSME sector in the region by providing access to medium and long-term financing.

The Client

Participating banks, NBMFIs and leasing companies.

EBRD Finance

EUR 75 million in debt, equity and guarantee facilities to financial intermediaries. The first proposed transaction under the Framework will be a EUR 3.0 million senior loan to FINCA Kosovo.

Project Cost

Not applicable.

Environmental Impact

The project will comply with EBRD’s Environmental Procedures for Small and Micro Loans and for Intermediated Financing through Local Banks in respect to MSME components. These include compliance with applicable national environmental, health and safety legislation, adherence to the Environmental Exclusion List, submission of Annual Environmental Report to the Bank and nomination of a senior staff member in charge of the environmental issues.

Technical Cooperation

Technical cooperation funding of up to EUR 10 million will be sought in order to achieve the stated goals under this Framework. It is envisaged that Framework projects with partner banks and leasing companies will be accompanied with appropriate TC to support institution building aimed at establishing sustainable MSME finance operations and expanding their outreach. TC projects with participating NBMFIs will be aimed at general institutional strengthening, including supporting their transformation into regulated banks.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

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Text of the PIP

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