EFSE Provides EUR 15 Million Loan to ProCredit Bank Serbia

Nov 2010
Frankfurt am Main, Belgrade, November, 25 2010 - The European Fund for Southeast Europe (EFSE) has provided another loan to the value of EUR 15 million to ProCredit Bank Serbia, enabling the bank to expand its lending activities to very small and small enterprises.

To date, EFSE has provided EUR 50 million worth of funding to ProCredit Bank Serbia. The new loan will strengthen the existing relationship between EFSE and ProCredit Bank Serbia.

ProCredit Bank is a medium-sized bank in Serbia which has gained strong expertise in small and medium enterprise (SME) and agricultural sector lending. The Bank invested over EUR 2.4 billion into the Serbian economy since the beginning of its operations in 2001. It is the leading provider of financial services for very small, small and medium-sized companies.

"Our cooperation with EFSE so far has had a significant impact on the development particularly of our smaller enterprise clients. This loan will certainly further increase our capacity to support the smaller business sector. It is also another international validation of our development orientation, expertise in SME support and stability," said Borislav Kostadinov, Chairman of the Supervisory Board of ProCredit Bank Serbia.

“This loan agreement reinforces the long-term relationship between ProCredit Bank and EFSE,” said Dr. Klaus Glaubitt, Chairman of the Board of Directors of EFSE. “Moreover, it confirms EFSE’s commitment to support the financially underserved smaller businesses which are at the heart of private sector growth in Serbia. This is of particular relevance in boosting growth as the local economy starts to recover in the aftermath of the crisis.”

EFSE has become one of Serbia’s largest creditors in the micro and small enterprise (MSEs) finance sector. It has offered a total of EUR 162 million of committed funds to local financial institutions since its inception in December 2005. These partner lending institutions have on-lent the funds in the form of more than 34,000 business and housing loans to local MSEs and private households. EFSE’s support to the Serbian financial sector does not only include financial investments, but also technical assistance, consulting and training offered to partner lending institutions with the aim of increasing the outreach to its target group.

Source : EFSE

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