The European Bank for Reconstruction and Development (EBRD) is extending financial package worth 160 million euros to UniCredit Bank Serbia to address key challenges facing the local economy.
The facility, the largest between the two banks to date, includes a 100 million-euro loan for on-lending to small and medium-sized enterprises (SMEs) to improve access to finance for this vital sector of the economy and support investments to increase competitiveness in local and international markets; a 35 million-euro credit line in Serbian dinars, included in the 100 million-euro loan, to boost the use of local currency to reduce the possible effect of exchange rate volatility and increase funding options for small borrowers; and a 60 million-euro mortgage loan for first-time homeowners, with 60 per cent of the total loan amount allocated for lending outside the Serbian capital, Belgrade.
“We are pleased to further our cooperation with our long-standing partner UniCredit Bank by offering financing in foreign and local currency to Serbian businesses and extending mortgage loans to Serbian citizens,” said Zsuzsanna Hargitai, EBRD regional head of the Western Balkans. “Not only will this agreement help companies to invest and improve their competitiveness, but it will also support many people in finding a new home.”
Feza Tan, CEO of UniCredit Bank Serbia, added: “Continuing our successful cooperation with the EBRD, we are pleased that, once again, as a responsible financial institution and a reliable partner in Serbia, we are extending our support for the development of the Serbian economy and citizens. Recognising the importance of the SME sector, a key engine of economic growth and job creation, we are striving to find ways to offer products and services that can help them improve and expand their businesses.”