MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Lends $14m to Societe Generale Banka Montenegro to Support On-Lending for Housing

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, is lending EUR 10 million (USD 13.5 million) to Societe Generale Banka Montenegro, a subsidiary of French banking group Societe Generale, for on-lending to individual borrowers to finance long-term residential mortgages in Montenegro. The loan will be provided under the Western Balkans and Croatia Financing Framework, which aims to support banks and other financial institutions to extend financing to the private sector.

Societe Generale Banka Montenegro has 20 branches throughout the country. As of December 2012, Societe Generale reported total assets equivalent to USD 1.69 trillion and net banking income equivalent to USD 31 billion. EBRD has invested a total of EUR 400 million (USD 540 million) in 40 projects in Montenegro. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By Megan McGowan, Research Associate

About Societe Generale:

Société Générale is a financial institution that was established in 1864 and is based in Paris, France. Société Générale offers retail and private banking, corporate and investment banking, and investment management services in 85 countries. As of December 2012, Société Générale reported total assets equivalent to USD 1.69 trillion and net banking income equivalent to USD 31 billion.

About European Bank for Reconstruction and Development (EBRD):

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. 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 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources:

[1] European Bank for Reconstruction and Development Press Release: http://www.ebrd.com/pages/news/press/2014/140127a.shtml

MicroCapital: “European Bank for Reconstruction and Development (EBRD) to Loan $64.8m to Banque Tuniso-Kowetienne of Tunisia for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs), Trade Financing,” January 31, 2014, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-64-8m-to-banque-tuniso-kowetienne-of-tunisia-for-on-lending-to-micro-small-medium-sized-enterprises-msmes-tra/

MicroCapital: “European Bank for Reconstruction and Development (EBRD) to Loan $2m to FINCA Jordan for On-Lending to Micro-, Small Enterprises (MSEs),” January 18, 2014,?https://www.microcapital.org/european-bank-for-reconstruction-and-development-ebrd-to-loan-2m-to-finca-jordan-for-on-lending-to-micro-small-enterprises-mses/

MicroCapital: “European Fund for Southeast Europe (EFSE) to Loan $20m to Bank Republic of Georgia to Support Lending to Micro-, Small Enterprises (MSEs),” October 12, 2013, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-to-loan-20m-to-bank-republic-of-georgia-to-support-lending-to-micro-small-enterprises-mses/

MicroCapital Universe Profile: Société Générale, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Societe+Generale

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD),?http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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