The European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), has launched a new €100 million portfolio risk-sharing facility to improve access to finance for micro, small, and medium-sized enterprises (MSMEs) in Serbia. Implemented through ProCredit Bank Serbia, the initiative aims to strengthen business growth, encourage investment, and support economic development across the country, particularly among enterprises that often face difficulties obtaining affordable financing.
Under the arrangement, the EBRD will provide an unfunded portfolio guarantee of up to €50 million, covering half of the credit risk associated with a newly generated portfolio of MSME loans worth up to €100 million. This risk-sharing mechanism enables ProCredit Bank to extend more financing to businesses while reducing its exposure to potential losses. As a result, the bank can increase lending capacity and support a larger number of enterprises across different sectors of the economy.
A key objective of the programme is to improve access to finance for businesses located outside Serbia’s major urban centres. Many smaller enterprises in rural and regional areas face barriers to obtaining credit, limiting their opportunities for growth and expansion. By reducing lending risks, the facility encourages greater financial inclusion and helps ensure that businesses across the country can benefit from investment opportunities and economic development initiatives.
The operation is supported by the European Fund for Sustainable Development Plus (EFSD+), which provides EU-backed first-loss risk coverage. This support enhances the EBRD’s ability to take on additional lending risk and encourages financial institutions to serve underserved segments of the economy. The collaboration demonstrates how international financial institutions and development partners can work together to stimulate private-sector growth and strengthen economic resilience.
The programme places a strong emphasis on supporting inclusive entrepreneurship. Particular attention will be given to businesses led by women and young entrepreneurs, groups that often face additional challenges in accessing finance. By expanding lending opportunities to these business owners, the initiative seeks to foster greater economic participation, innovation, and job creation throughout Serbia.
Environmental sustainability is another major focus of the financing facility. At least 30 percent of the loan portfolio is expected to support green investments that contribute to energy efficiency, climate change mitigation, and environmentally sustainable business operations. These investments will help Serbian enterprises adopt cleaner technologies, reduce energy consumption, and align with broader environmental and climate objectives.
The facility also supports Serbia’s ongoing transition toward a greener and more competitive economy. By encouraging investment in sustainable business practices, the programme helps companies improve operational efficiency while reducing their environmental impact. Green financing is increasingly recognized as an important tool for enhancing long-term economic resilience and supporting sustainable development goals.
According to EBRD representatives, the combination of portfolio risk-sharing and EU-backed support creates strong incentives for increased lending to small businesses. The structure allows financial institutions to expand credit availability at scale while promoting investments that contribute to economic competitiveness and environmental sustainability. This approach is designed to deliver benefits for both businesses and the wider economy.
ProCredit Bank Serbia views the partnership as an important opportunity to strengthen its support for the real economy. Through expanded lending activities, the bank aims to help businesses grow, invest in innovation, and adopt sustainable solutions. The institution has a long-standing focus on responsible banking and has consistently supported MSMEs as key drivers of economic development and employment.
The initiative reflects the broader commitment of both the EBRD and the European Union to support Serbia’s private sector and sustainable development objectives. With more than €10 billion invested by the EBRD in Serbia to date, projects such as this continue to play an important role in promoting entrepreneurship, strengthening competitiveness, advancing the green transition, and fostering inclusive economic growth across the country.
