FIF - WB Youth in Business - Alter Modus



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

09 Aug 2022



PSD disclosed:

11 Aug 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Provision of a senior unsecured loan of up to EUR 3.0 million to be made available in two tranches to Alter Modus ("AM") under the Western Balkans Youth in Business ("WB YiB") Programme. The second tranche will be uncomitted.

Project Objectives

The loan proceeds will be used for on-lending to eligible micro and small-sized enterprises ("MSEs") whose overall operational management responsibility or majority ownership is held by a person (or persons) under the age of 35 ("Youth MSEs") in Montenegro in accordance with the Policy Statement.

Transition Impact

ETI score: 72

The project contributes to the objectives of the FIF, supporting the Transition Impact qualities of Inclusive and Competitive:

Inclusive: The project will contribute to the economic inclusion of young enteprenuers by supporting Youth MSEs' access to finance and business advisory services, while demonstrating the business case for scaling-up lending to the Youth MSE segment.

Competitive: Transition impact is expected to derive from market expansion and through building a more competitive financial sector by strengthening the capacity of the Partner Financial Institutions (PFIs) for financing Youth MSEs. 

Client Information


MIKROKREDITNA FINANSIJSKA INSTITUCIJA ALTER MODUS DOO is the largest micro-finance institution (MFI) in Montenegro. It is 100%-onwed by NGO Alter Modus. AM holds a market share of 67% by total assets and 58% by customer loans in the MFI sector as of YE2021. It serves 18,391 clients through 18 branches and outlets across the country. It is focused on loans to entrepreneurs, MSEs, employed persons and pensioners.  

EBRD Finance Summary

EUR 3,000,000.00

Total Project Cost

EUR 3,000,000.00


Additionality is achieved by combining the necessary long-term financing with TC and First Loss Risk Cover into a package that promotes investment in Youth MSEs in Montenegro.

Furthermore, AM will make use of EBRD expertise for the adoption of gender standards and equal opportunities action plans. In particular, AM will support the EBRD's policy dialogue and actively participate in the events and workshops aimed at improving their understanding of the segment and the challenges that women face in accessing finance as part of the EBRD-led nation/region-wide public-private policy dialogue activities. 

Environmental and Social Summary

Categorised FI (ESP 2019). Alter Modus is an existing client of the Bank and its environmental and social (E&S) performance has been satisfactory to date as evidenced by annual reporting on environmental and social matters (including the 2021 AESR). A Human Resources policy was developed in 2018. The 2016 Environmental and Social Policy will be revised by end 2022 to align with the EBRD Exclusion List, as captured in the Loan Agreement. Alter Modus is offering microfinancing services largely for the Services segment with an average loan size of 2,800 €; this is considered as low E&S risk.

In the context of this new transaction, Alter Modus will be required to continue to comply with Performance Requirements 2, 4 and 9, and to apply EBRD's E&S Risk Management Procedures for Corporate and SME loans. Alter Modus should continue to provide annual E&S reporting to the Bank on compliance with the applicable PRs and any other E&S matters arising during the year. 

Technical Cooperation and Grant Financing

TC: The Programme is supported by TC funds, provided by the government of Sweden, in the amount of EUR 3.54 million (total for the Programme), and in this case will support AM's capacity building and also Youth MSEs.

Non-TC: Up to EUR 0.30 million is provided by EBRD Shareholders Special Fund in the form of First Loss Risk Cover to AM in accordance with the Policy Statement.

Company Contact Information

Ana Kentera
+382 20 655 280
+382 20 655 260
Ul. Vucedolska br. 15 81000, Podgorica Montenegro

PSD last updated

11 Aug 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

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Tel: +44 20 7338 7168

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Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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