The European Bank for Reconstruction and Development (EBRD), an international finance institution headquartered in London, recently announced plans to disburse financing facilities worth a total of EUR 13 million (USD 17.1 million) to Ohridska Banka, a Macedonian subsidiary of French bank Societe General that focuses on financing small and medium-sized enterprises (SMEs). The first of the facilities, both of which are earmarked for SMEs, will be a EUR 10 million (USD 13.1 million) credit line. The second facility, which is in the amount of EUR 3 million (USD 3.95 million), falls under the Private Sector Support Facility (PSSF), a EUR 15 million (USD 19.7 million) framework developed between EBRD and a group of Macedonian banks to be used for on-lending to SMEs. The PSSF loan is an expansion of an existing line of credit of EUR 5 million (USD 6.95 million) that is being used by Ohridska Banka to support the development of Macedonian businesses through investments that aim to improve environmental, health and safety standards as well as product quality. As of September 30, 2011, Ohridska Banka reported total assets of EUR 395 million (USD 520 million).
In other news, EBRD has disbursed a five-year loan of EUR 30 million (USD 39.5 million) to Banca Intesa Beograd (BIB), a commercial bank in Serbia, for on-lending to SME clients. BIB is majority-owned by Intesa Sanpaolo Group, a banking group based in Italy with subsidiaries in 12 European countries. Further information on the loan has not been released. As of August 2012, Banca Intesa Beograd reports total assets worth EUR 3.69 billion (USD 4.86 billion).
EBRD has invested approximately EUR 1.1 billion (USD 1.45 billion) in approximately 80 projects in Macedonia and EUR 3 billion (USD 3.95 billion) in 200 projects in Serbia.
By Charlotte Newman, Research Associate
About Ohridska Banka
Ohridska Banka is a Macedonian bank with 87,000 clients that focuses on financing small and medium-sized enterprises (SMEs). As of September 30, 2011, Ohridska Banka reported total assets of EUR 395 million (USD 520 million). For the year 2010, Ohridska Banka reported USD 264 million in deposits, a return on assets (ROA) of 0.2 percent and a return on equity (ROE) of 1.9 percent. Ohridska Banka is a subsidiary of French bank Societe General.
About Banca Intesa Beograd
Banca Intesa Beograd is a commercial bank based in Belgrade, Serbia. Its products include savings; bonds; guarantees; and loans to individuals, farms and small businesses. Banca Intesa Beograd is a member of Italy’s Intesa Sanpaolo, a commercial banking group that has subsidiaries in 12 European countries and total assets worth the equivalent of USD 881 billion as of 2011. As of August 2012, Banca Intesa Beograd reports total assets worth EUR 3.69 billion (USD 4.86 billion). Banca Intesa does not report financial data to the US-based nonprofit Microfinance Information Exchange (MIX).
About the European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development Press Release: “Macedonia’s Ohridska Banka Gets €13 Million For SME Credit,” http://www.ebrd.com/english/pages/news/press/2012/121220d.shtml
European Bank for Reconstruction and Development Press Release: “Serbia’s Banca Intesa Gets EUR30 Million for SME Financing,” http://www.ebrd.com/english/pages/news/press/2012/121204c.shtml
MicroCapital.org story, December 20, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development Loans $13.2 to BT Leasing Transilvania of Romania,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-13-2m-to-bt-leasing-transilvania-of-romania/
MicroCapital.org story, November 14, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends 70m to Garanti Bank of Turkey, Hipotekarna Banka of Montenegro, Bai Tushum of Kyrgyz Republic,” http://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-70m-to-garanti-bank-of-turkey-hipotekarna-banka-of-montenegro-bai-tushum-of-kyrgyz-republic-2/
MicroCapital Universe Profile: Ohridska Banka
MicroCapital Universe Profile: Banca Intesa Beograd
MicroCapital Universe Profile: European Bank for Reconstruction and Development
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/