The European Bank for Reconstruction and Development (EBRD) has announced a new €5 million financial package for Erste Bank AD Podgorica (Erste Bank Montenegro), aimed at supporting Montenegro’s green transition and promoting inclusive growth. The initiative will provide targeted financing for energy-efficient investments and women-led businesses across the country.
Under this agreement, €3 million will be allocated to help households, housing associations, and construction companies invest in energy-saving projects, while €2 million will be directed toward empowering women-led micro, small, and medium-sized enterprises (MSMEs) by providing them with much-needed growth capital. These loans will be complemented by EU-funded grant incentives and guarantees, ensuring both financial support and reduced investment risks for beneficiaries.
The official signing took place on 14 October 2025 in Tivat, during the Smart Growth, Green Future investment conference, which was jointly organized by the European Union Delegation to Montenegro, the Government of Montenegro, and the Montenegrin Investment Agency. This new financial package underscores the EBRD’s long-term commitment to sustainability, inclusion, and competitiveness in Montenegro, building upon years of successful collaboration in the region.
Charlotte Ruhe, Managing Director for Central and South-Eastern Europe at the EBRD, expressed enthusiasm about the partnership, highlighting that it marks the beginning of cooperation between the EBRD and Erste Bank Montenegro. She noted that the initiative, launched under the Women in Business and Green Economy Financing Facility (GEFF) programmes, is designed to drive both gender inclusion and environmental responsibility. Ruhe emphasized that the credit lines—supported by EU-funded incentive grants and guarantees—will empower women entrepreneurs to expand their businesses while encouraging households to adopt energy-saving measures, ultimately contributing to a cleaner and more sustainable future for Montenegro.
Aleksa Lukić, Chairman of the Management Board of Erste Bank Montenegro, affirmed the bank’s dedication to sustainability and inclusive development. He explained that Erste Bank has a strong record in financing renewable energy and green initiatives, and the new GEFF credit line extends this support to households, enabling them to actively participate in the green transition. Lukić added that through the Women in Business programme, Erste Bank will offer favourable financial products and educational opportunities for women entrepreneurs, reinforcing its mission to foster sustainable and inclusive economic progress.
Johann Sattler, Ambassador of the European Union to Montenegro, commended the initiative and reaffirmed the EU’s commitment to promoting women’s entrepreneurship and inclusive economic growth. He stated that fostering an equitable economy is central to Montenegro’s EU accession journey, and programmes like this directly contribute to that vision. Sattler also welcomed the EBRD’s ongoing support for the GEFF initiative, particularly its efforts to channel EU funds and guarantees toward household energy-efficiency upgrades across the country.
The €3 million portion dedicated to residential energy efficiency will be deployed through the EBRD’s Green Economy Financing Facility (GEFF) for the Western Balkans. This programme aims to enhance energy efficiency within the region’s residential sector and includes grant incentives funded by the EU, providing up to 20 percent cashback for borrowers who successfully complete their energy-saving projects. In addition, both Erste Bank Montenegro and borrowers will receive expert technical assistance funded by Japan and the EU to ensure smooth and effective implementation.
The €2 million facility for women entrepreneurs falls under the EBRD’s Women in Business programme, which includes guarantees for first-loss risk cover funded by the EU through the European Fund for Sustainable Development Plus (EFSD+). This will provide added security for the bank and facilitate greater access to finance for women-led enterprises. As one of Montenegro’s key institutional investors, the EBRD has invested over €1 billion across 101 projects in the country, supporting initiatives that drive sustainable development, private-sector competitiveness, infrastructure improvement, and regional integration.
The GEFF programme is co-funded by the European Union, Austria, Japan, and Denmark, as well as Austria and Switzerland through the High-Impact Partnership on Climate Action (HIPCA). HIPCA is further supported by a coalition of international partners, including Austria, Canada, Finland, Germany, the Netherlands, South Korea, Spain, Switzerland, TaiwanICDF, the United Kingdom, and the United States.
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