Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

04 Sep 2001



PSD disclosed:

03 Aug 2001

Project Description

The project aims to support companies in FR Yugoslavia with short-term working capital loans to assist them in achieving normal levels of capacity utilisation, reduce unit costs, increase output and improve profitability. The proposed loans will be with companies that are already private or have a clear privatisation plan.
The project aims to address the immediate needs of large local companies that require a kick start to their business activities at the early stages of transition to a market economy.
State-owned companies or companies with social or widely dispersed ownership structures would be required to make a realistic plan for privatisation and/or foreign direct investment (with clearly defined milestones) acceptable to the EBRD in order to be included in the facility. Failure to comply with the privatisation and/or investment timetable could cause the Working Capital Facility to be suspended or withdrawn.

Transition Impact

The project would have an impact on the transition process by:
  1. introducing a new product specifically designed to address the needs of local large companies at an early stage of their transition, and to provide working capital finance to cash-starved enterprises;
  2. providing incentives for local companies in FR Yugoslavia to introduce changes in their corporate governance structure and policies, allowing future privatisation or foreign direct investment; and
  3. providing incentives for the Government to introduce appropriate policy reform, including acceptable privatisation and associated rules and regulations.

The Client

Potential clients would be selected private, or state and "socially" owned companies that have an agreed privatisation plan including potential foreign direct investment. They would also need to meet high standards of integrity, corporate governance and have a stable track record of foreign currency sales and earnings. The companies would usually have the capacity to attract a strategic investor through the quality of the production and marketing of their products.

EBRD Finance

The total amount proposed for the Working Capital Facility is €65 million. The amount is estimated to be sufficient for six to ten transactions ranging in size between €3 million and €10 million. The facility could be co-financed by local banks.

Project Cost

€65 million

Environmental Impact

Sub-projects under the Working Capital Facility would require an environmental audit leading to an Environmental Action Plan (EAP). The EAP should include short and long-term environmental mitigation measures and improvements. The short-term measures would be designed to address any potential urgent deficiencies in the companies’ environmental compliance and performance and would promote the adoption of an environmental management system. A long-term EAP would aim to bring the companies’ operations in compliance with national and EU environmental standards within a reasonable timeframe and would be incorporated into any potential future long-term investment or loan by the EBRD.

Technical Cooperation

The project team will endeavour to find donor funds for associated:
  • legal due diligence
  • compliance with IAS (International Accounting Standards) of audit ; and
  • environmental assessments.
Tendering opportunities will be defined with reference to specific sub-projects approved under the facility.

Company Contact


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)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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