MICROCAPITAL BRIEF: Erste Bank Serbia Opens $45m Credit Line from EBRD to Increase Financing to SMEs

The UK-headquartered European Bank for Reconstruction and Development (EBRD) recently issued a loan to the Serbian unit of Austria-based Erste Group Bank in the amount of EUR 40 million (USD 45 million) with the aim of supporting small and medium-sized enterprises (SMEs) in Serbia. As of year-end 2018, Erste Bank Serbia had 75 branches, total assets of RSD 203 billion (USD 1.94 billion) and deposits of RSD 173 billion (USD 1.56 billion).

The Erste Group Bank’s 30 members employ approximately 47,000 people who serve 16.2 million clients via 2,700 branches in Austria, Croatia, Czech Republic, Germany, Hungary, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia.

Founded in 1991, EBRD provides loans, debt securities, equity investments and technical assistance to micro-, small and medium-sized businesses via commercial banks and microfinance institutions. As of 2019, EBRD’s shareholders comprise 67 countries plus the EU. With a focus on “the promotion of private and entrepreneurial initiative,” the bank invested EUR 9.5 billion (USD 10.9 billion) during 2018 in 395 projects.

By Daena McClintock, Research Associate

Sources and Additional Resources

EBRD press release
https://www.ebrd.com/news/2019/ebrd-lends-40-million-to-erste-bank-to-support-smes-in-serbia.html

Erste Bank Serbia homepage
https://www.erstebank.rs

Erste Group Bank homepage
https://www.erstegroup.com

Erste Group Bank 2018 Annual Report
https://www.erstegroup.com/content/dam/at/eh/www_erstegroup_com/en/Investor%20Relations/2018/Reports/AR2018_FINAL_en.pdf

Erste Bank Serbia financial statements
https://www.erstebank.rs/en/about-us/financial-statements

EBRD homepage
https://www.ebrd.com

EBRD 2018 Annual Report
https://www.ebrd.com/documents/comms-and-bis/financial-report-2018.pdf

MICROCAPITAL BRIEF: EBRD, EU Launch Support for SMEs in Bulgaria, Latvia, Romania
https://www.microcapital.org/microcapital-brief-ebrd-eu-launch-support-for-smes-in-bulgaria-latvia-romania/

MICROCAPITAL BRIEF: EBRD Sells 9% Equity Stake in Mobiasbanca of Moldova for $2.9m as Societe Generale Sells Majority Stake to OTP
https://www.microcapital.org/microcapital-brief-ebrd-sells-9-equity-stake-in-mobiasbanca-of-moldova-for-2-9m-as-societe-generale-sells-majority-stake-to-otp/

Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.