EBRD And EU Launch €100 Million Risk-Sharing Facility With ProCredit Bank To Boost MSME Financing In Serbia

The European Bank for Reconstruction and Development (EBRD), with support from the European Union (EU), has launched a new €100 million portfolio risk-sharing facility with ProCredit Bank Serbia to improve access to finance for micro, small, and medium-sized enterprises (MSMEs) across the country.

The initiative is designed to help Serbian businesses secure the funding they need to grow, invest, and strengthen their operations, particularly in regions outside major urban centers where access to financing can often be more limited. By supporting MSMEs, the facility aims to contribute to job creation, economic development, and the long-term resilience of Serbia’s private sector.

Under the agreement, the EBRD will provide an unfunded portfolio guarantee of up to €50 million, covering 50% of the credit risk on a newly generated portfolio of MSME loans worth up to €100 million. This risk-sharing mechanism will enable ProCredit Bank Serbia to increase its lending capacity while maintaining a balanced risk profile and preserving capital.T

he operation is further supported by the European Union through first-loss risk coverage under the European Fund for Sustainable Development Plus (EFSD+). This EU-backed support enhances the EBRD’s ability to take on additional risk and encourages greater lending to underserved business segments that may otherwise face challenges in obtaining financing.

A key objective of the program is to expand financial opportunities for a broad range of entrepreneurs and businesses, including women-led and youth-led enterprises. By improving access to credit, the initiative seeks to promote greater financial inclusion and help smaller businesses invest in growth, innovation, and competitiveness.

The facility also aligns with Serbia’s sustainability and climate objectives. At least 30% of the loan portfolio is expected to be directed toward green investments, supporting projects focused on energy efficiency, climate change mitigation, renewable energy adoption, and environmentally sustainable business practices.

This will help businesses reduce their environmental impact while improving operational efficiency and long-term competitiveness.Aleksandra Vukosavljevic, the EBRD’s Director for Financial Institutions, Western Balkans and Eastern Europe, said the combination of the EBRD’s risk-sharing instrument and EU support under the EFSD+ creates strong incentives for increased lending to Serbia’s small business sector.

She noted that the facility will allow ProCredit Bank to provide financing to MSMEs on a larger scale while supporting green investments and contributing to a more resilient and competitive economy.Igor Anić, Chairman of the Management Board of ProCredit Bank Serbia, described the agreement as an important milestone in strengthening support for Serbian entrepreneurs and businesses.

He emphasized that the facility will enable the bank to expand lending activities, particularly for companies located outside major cities and for businesses investing in sustainable and environmentally friendly solutions. According to Anić, the bank remains committed to supporting the real economy and contributing to inclusive and sustainable economic development.

ProCredit Bank Serbia has been a long-standing partner of the EBRD and is recognized as one of the country’s leading lenders to MSMEs. The bank has built a strong reputation for responsible banking practices and for supporting businesses that contribute to sustainable economic growth.The new agreement further strengthens the EBRD’s role in supporting Serbia’s economic development.

To date, the Bank has invested more than €10 billion in the country across a wide range of sectors, including private-sector development, infrastructure, competitiveness, financial services, and green transition projects. Through initiatives such as this risk-sharing facility, the EBRD and the European Union continue to play an important role in helping Serbian businesses access finance, adopt sustainable practices, and build long-term economic resilience.