EBRD provides RSD 2.9b loan to Eurobank Serbia

LONDON: The European Bank for Reconstruction and Development (EBRD) is supporting the post-pandemic recovery of the Serbian economy by securing financing for small and medium-sized enterprises (SMEs), in cooperation with local partner banks.

The Bank is extending a RSD 2.9 billion local currency loan (€24.7 million equivalent) to Eurobank Serbia for on-lending to local SMEs. The credit line will help expand lending to private businesses through working-capital lines and investment loans to SMEs, including those operating in economically less-developed regions of the country.

Furthermore, the credit line will strengthen access to local currency loans for SMEs in Serbia, a country where euro loans represent more than 60 per cent of the banking sector loan portfolio.

Charlotte Ruhe, Managing Director Central and South Eastern Europe, EBRD, said: "We are pleased to continue our cooperation with Eurobank Serbia and to extend jointly this new credit line that will support the recovery and development of local businesses. Increasing the availability of our financing in the local currency dinar will substantially benefit local borrowers as they are no longer exposed to exchange rate vulnerabilities. This will also contribute to strengthening the confidence in the domestic financial system."

Eurobank Serbia is a longstanding partner of the EBRD with a strong orientation towards the SME sector. The new credit line will support Eurobank Serbia's ambition to further increase SME lending while reaching more businesses outside the capital and attracting new clients.

Slavica Pavlovi?, President of Eurobank Executive Board, said:"Since the beginning of its operations in Serbia, Eurobank has been providing strategic support to the development of SMEs. Their role is of vital importance for progress of the local economy, especially now, during these challenging times.