EBRD secures funding boost for smaller businesses in Serbia

The transaction provides a 50 million euro guarantee to reduce credit risks, helping firms access capital outside major cities.

Image source: ebrd.com
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Women's Tabloid News Desk

The European Bank for Reconstruction and Development (EBRD) has teamed up with the European Union (EU) to sign a new 100 million euro risk-sharing facility with ProCredit Bank Serbia. Announced on 08 June 2026, the strategic project aims to improve commercial lending channels for micro, small and medium-sized enterprises (MSMEs) located across the Balkan nation.

Under the specific terms of the transaction, the EBRD will issue an unfunded portfolio guarantee valued at up to 50 million euros. This institutional backing will cover exactly 50 per cent of the total credit risk associated with a newly established pool of smaller business loans. The operational structure will enable ProCredit Bank Serbia to allocate fresh capital safely, allowing the commercial lender to expand its credit lines outside major regional cities while protecting its overall balance sheet.

Financial support for the agreement comes via EU-backed first-loss risk protection funded through the European Fund for Sustainable Development Plus (EFSD+). This international assistance helps increase the commercial risk tolerance of the EBRD, letting local lenders route capital to underserved sectors of the Serbian economy. The initiative explicitly prioritises increasing access to finance for local companies managed by young entrepreneurs and female business owners.

Environmental targets are also integrated into the financial layout. The partners expect at least 30 per cent of the newly created loan portfolio to fund sustainable corporate investments. These commercial loans will go toward carbon mitigation plans, industrial energy efficiency updates and environmentally sound corporate practices.

Aleksandra Vukosavljevic, the EBRD’s Director for Financial Institutions, Western Balkans and Eastern Europe, said:

“By combining the EBRD’s portfolio risk‑sharing instrument with EU support under the EFSD+, this operation creates strong incentives for increased lending to Serbia’s small businesses. It allows ProCredit Bank to extend financing to MSMEs at scale, while advancing green investments and supporting a more resilient and competitive economy.”

Igor Anić, Chairman of the Management Board of ProCredit Bank Serbia, said:

“This cooperation with the EBRD and the European Union marks an important step in further strengthening our support to MSMEs in Serbia. Through this risk-sharing facility, we will be able to expand our lending, particularly towards businesses outside major urban centres, as well as companies investing in sustainable and green solutions. Our goal remains to be a reliable partner to the real economy, contributing to its long-term, inclusive and sustainable development.”

The EBRD has functioned as a principal institutional financier in the country for decades, having spent more than 10 billion euros to date supporting local competitive markets.

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