Private businesses in Serbia are set to benefit from a EUR 40 million loan provided by the European Bank for Reconstruction and Development (EBRD) to ProCredit Bank Serbia as the country seeks to recover from the coronavirus pandemic.
Procredit Bank will on-lend the EBRD financing to viable local small and medium-sized enterprises (SMEs) affected by the severe economic impact of the virus. SMEs account for 66 per cent of the country’s employment.
ProCredit Bank is a mid-sized universal bank in Serbia with a strong focus on SME lending, and is a long-standing partner of the EBRD.
“Our agreement with ProCredit Bank Serbia marks an important step forward in the effort to support the recovery in Serbia. ProCredit’s outreach in the SME segment and in rural areas will play an important role in deepening the impact of our engagement. We are proud to renew our long-standing partnership for the benefit for Serbia,” Zsuzsanna Hargitai, EBRD Regional Director, Western Balkans and Head of Serbia, said.
“This is a good message for all private businesses in Serbia. By signing a new agreement, the EBRD and our bank have confirmed our joint commitment to further improving the economic environment and creating conditions for new jobs in Serbia,” Igor Anić, Chairperson of the Executive Board of ProCredit Bank, added.
The EBRD is a leading institutional investor in Serbia, having invested more than EUR 5.9 billion across 265 projects in the country to date. The Bank is focusing on supporting private-sector development, improving public utilities and furthering the overall transition towards a green economy.
ProCredit Bank is the only bank operating in Serbia with 100 per cent German capital. To date, ProCredit Bank has invested over EUR 5 billion in Serbia, over 85 per cent of which consists of loans to SMEs, entrepreneurs and agricultural producers.