European Bank For Reconstruction And Development Provides €18 Million Financing Package To Expand Business And Housing Finance In Montenegro

The European Bank for Reconstruction and Development (EBRD) has announced an €18 million financing package for NLB Banka AD Podgorica (NLB), aimed at expanding access to finance for businesses and households across Montenegro. The funding is designed to support entrepreneurship, improve financial inclusion, encourage sustainable investments, and strengthen the country’s economic resilience.

The financing package consists of four senior unsecured loans tailored to different segments of the economy. It includes a €7 million loan dedicated to small and medium-sized enterprises (SMEs), a €2 million Women in Business loan, a €2 million Youth in Business loan, and a €7 million mortgage loan. Together, these facilities are intended to help businesses grow and improve competitiveness while also providing greater access to funding for women entrepreneurs, young business owners, and households seeking long-term housing finance.

A portion of the financing will be supported by the European Union through the European Fund for Sustainable Development Plus (EFSD+). This support will be provided in the form of risk-sharing instruments, enabling NLB to extend financing to market segments that have traditionally faced greater challenges in accessing credit, particularly women-led and youth-led businesses.

In addition to financial support, the programme will include advisory services and capacity-building initiatives to help the bank further develop inclusive financial products and strengthen its ability to serve a broader range of customers.The financing package also aligns with Montenegro’s sustainability goals and is expected to contribute to the country’s green transition.

Part of the funding will be directed toward energy-efficient investments and green mortgage products, supporting projects that reduce energy consumption, lower greenhouse gas emissions, and improve the environmental performance of residential and commercial properties. These investments are expected to promote sustainable economic growth while helping households and businesses reduce long-term energy costs.

Remon Zakaria, EBRD Head of Montenegro, highlighted the importance of the partnership between the EBRD, NLB Banka AD Podgorica, the European Union, and bilateral donors in delivering practical support to the country. He noted that the financing package will help widen access to finance for entrepreneurs, women, and young people, while also enabling households to invest in better and more affordable housing.

According to Zakaria, the combination of EBRD financing, NLB’s extensive local presence, and EU-backed risk-sharing mechanisms will contribute to building a more inclusive, environmentally sustainable, and resilient Montenegrin economy.Martin Leberle, President of the Management Board of NLB, emphasized that the bank’s long-standing partnership with the EBRD is based on a shared commitment to supporting Montenegro’s development.

He described the €18 million package as a significant step that will allow the bank to expand financing opportunities for SMEs while introducing new possibilities for women and young entrepreneurs. Leberle noted that the Youth in Business credit line is the first programme of its kind in Montenegro’s banking sector and will provide dedicated support to younger business owners seeking to establish and grow their enterprises.

He also stated that the financing will contribute to the country’s green transition and support improvements in housing conditions, both of which are important for Montenegro’s long-term economic development. According to Leberle, cooperation with the EBRD and the European Union not only expands access to financing but also helps strengthen the bank’s expertise and ability to deliver sustainable financial solutions to its clients.

Bernard Brunet, Head of Cooperation at the European Union Delegation to Montenegro, stressed the importance of developing a dynamic and competitive private sector as Montenegro progresses toward European Union membership and future integration into the EU Single Market. He noted that access to a market of more than 450 million consumers presents significant opportunities for Montenegrin businesses, but that companies must have sufficient financial resources to innovate, adapt, and expand.

Brunet highlighted the role of EU guarantees in supporting local banks and enabling them to provide stronger backing to domestic businesses, particularly those operating in innovative sectors or industries that may be considered higher risk. He noted that improving access to finance for micro, small, and medium-sized enterprises is essential for strengthening competitiveness and supporting economic growth.

NLB Banka Podgorica is one of Montenegro’s leading commercial banks, with a strong presence across retail, SME, and corporate banking. The bank has maintained a long-standing partnership with the EBRD, as part of the broader collaboration between the EBRD and NLB Group throughout the Western Balkans.

This cooperation has focused on improving access to finance, promoting financial inclusion, and encouraging the adoption of international best practices within the banking sector.The latest financing package also reflects the EBRD’s broader commitment to Montenegro’s economic development.

Since beginning operations in the country, the Bank has invested nearly €1.1 billion across 110 projects, supporting infrastructure development, private-sector growth, sustainability initiatives, and regional economic integration. Through investments such as this one, the EBRD continues to play a key role in helping Montenegro build a more competitive, inclusive, and sustainable economy.