Provision of a senior unsecured loan to Erste Bank Serbia ("EBS") of up to EUR 25 million under the Bank's Resilience Framework ("RF"), developed to address the economic impact of the Covid-19 pandemic. The proceeds of the proposed loan will be on-lent to local private small and medium-sized enterprises ("SMEs"), corporates and municipalities in Serbia to cover liquidity needs that may arise as a result of Covid-19.
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The proceeds of the loan will help EBS to continue lending to eligible corporates, SMEs and municipalities in Serbia by providing liquidity in the time of crisis following the Covid-19 pandemic.
ETI score: 70
The project will contribute to ensure resilience and preserve competition in the financial sector of the Serbian economy. The facility will help EBS to maintain the full level of its operations, remain an effective market player during the Covid-19 pandemic (resilient) and will enable EBS to continue commercial lending in line with comparable banking sector participants (competitive).
ERSTE BANK AD NOVI SAD
EBS is a dynamic bank focused on operations with retail clients, municipalities and small and medium-sized enterprises, with an experienced management team and consistently strong performance. The bank has a market share of 6 per cent and is ranked 6th by total assets among 26 banks operating in Serbia. It is a subsidiary of Erste Group, an Austria-based banking group with a 200-year tradition, one of the largest financial services providers in the Central Eastern and South Eastern regions of Europe in terms of clients and total assets. EBS is a systematically-important bank in Serbia according to Central Bank classification
EBRD Finance Summary
Total Project Cost
EBRD financing effectively bridges a liquidity gap due to adverse market conditions caused by the impact of the Covid-19 pandemic and will allow EBS to continue lending to eligible corporates, SMEs and municipalities in Serbia.
Environmental and Social Summary
Categorised FI (ESP 2019). EBS is an existing client and its performance to date for existing exposures has been satisfactory. EBS will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. Sub-borrowers financed through EBS's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements. The overall risk portfolio of the investments foreseen under this facility is low to medium risk, and EBS has appropriate procedures in place to manage such investments.
Technical Cooperation and Grant Financing
Company Contact Information
+381 (0)21 489-0621
Milutina Milankovica 3a 11070 Novi Beograd
PSD last updated
21 Apr 2021
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.