Microfinance Monitor, June 10, 2010 –The European Fund for Southeast Europe (EFSE) has announced during its annual meeting in Ohrid, FYR Macedonia, that it is providing Serbia’s Komercijalna Banka a.d. Beograd with a loan of EUR 20 million.
Komercijalna Banka a.d. Beograd will use the proceeds to finance investments and working capital with long-term loans worth up to EUR 100,000 for local micro and small enterprises (MSEs) and individual entrepreneurs, which play a critical role in the private sector in Serbia.
“Through financially sustainable institutions like Komercijalna Banka, EFSE can support the growth of small business which is a key element for the stable economic growth of Serbia,” said a statement.
Komercijalna Banka a.d. Beograd is one of Serbia’s largest banks in terms of assets with 25 branches and 253 outlets it also has the largest network in the country.
The current loan to Komercijalna Banka a.d. Beograd is EFSE’s second loan to the Bank to refinance MSE loans, following a EUR 20 million loan in May 2009.
EFSE’s first loan to the bank of EUR 20 million has already had a strong developmental impact by helping create new jobs, accelerating business growth among MSEs and increasing confidence in the banking sector in Serbia.
EFSE began its operations in Serbia in 2005. Since the start of its involvement in the country, EFSE has offered approximately EUR 94 million in financing to 7 local commercial banks and specialised small-business banks in total. These partner lending institutions have on-lent over EUR 210 million of EFSE funds in the form of roughly 30,000 business loans to MSEs. Moreover, EFSE has provided technical assistance to partner lending institutions in Serbia to help expand their lending to MSEs and promote responsible banking practices.
