The International Finance Corporation, a member of the World Bank Group, has extended a EUR 20 million (USD 24.6 million) loan to ProCredit Bank Serbia, a private, development-oriented, full-service bank established in 2001, in an effort to increase access to loans for small and medium-sized enterprises in the country. According to Giovanni Daniele, IFC’s Resident Representative in Serbia, small and medium-sized enterprises are an important generator of employment in the country. However, the sector was severely hit by the recent global financial crisis, and companies are now experiencing problems in securing new financing.
As of 2008, ProCredit Bank Serbia had USD 1.0 billion in total assets, a gross loan portfolio of USD 586.6 million, 114,000 active borrowers with an average loan balance of USD 5,100 per borrower and 479,000 depositors with USD 519 million in total deposits.
By Conner Brannen, Research Assistant
About International Finance Corporation (IFC):
A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that “collectively determine its policies, and approve investments.” In fiscal year 2009, its new investments totaled USD 14.5 billion.
About ProCredit Bank Serbia:
ProCredit Bank Serbia is a development-oriented, full-service bank. It is one of 21 divisions of ProCredit Bank – a private bank established in 1998 with headquarters in Frankfurt, Germany. ProCredit Bank began its operations in Serbia in 2001 and has invested approximately EUR 1.6 billion (USD 2.0 billion) in the development of the Serbian economy. The bank focuses on lending to micro-, small and medium-sized enterprises.
As of 2008, ProCredit Bank Serbia had USD 1.0 billion in total assets, a gross loan portfolio of USD 586.6 million, 114,000 active borrowers with an average loan balance of USD 5,100 per borrower and 479,000 depositors with USD 519 million in total deposits.
Sources and Additional Resources:
International Finance Corporation: “IFC Helps Expand Access to Finance for Serbia’s Small and Midsize Businesses,” June 23, 2010: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=B9DB0560ABD125FF8525774B0052265B
MicroCapital Universe Profile: International Finance Corporation (IFC): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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