BELGRADE (Serbia), September 20 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) is providing a 20 million euro ($23.4 million) loan to Addiko Bank Serbia for on-lending to small and medium-sized enterprises (SMEs).
The funds will be particularly focused on investments to improve the competitiveness of the Serbian private sector as yet it remains difficult for many small businesses to access the much-needed funds to invest in the technologies, the EBRD said in a statement on Wednesday.
The new loan is the third project between the EBRD and Addiko Bank Serbia. A previous 10 million euro loan by the EBRD signed in 2017 has already been successfully utilised. In April 2018, Addiko joined the EBRD’s Trade Facilitation Programme (TFP) by signing a 10 million euro trade finance line to grow its trade finance business and expand its correspondent bank relationship.
Тhe continuation of this successful cooperation was very important for the strategic development of the competitiveness of the SME sector as a main driver for the local economy, Henry Russell, EBRD Director, said. "We are expanding our cooperation with Addiko Bank because we are very satisfied with the results we have achieved."
The SME sector accounts for over half of Serbia’s economic activity and is a major source of jobs. The success of the country’s economy therefore largely depends on the success of its small businesses. The sector has also been identified as a key area in the current process of European Union (EU) approximation.
"Stability in our business and our strategic commitment to further growth have allowed us to enter this successful cooperation. Our focus is always on our clients and this is one of the reasons why the EBRD continues to operate with our bank in Serbia, but also with the entire Addiko Group as one of the leading banks in south-eastern Europe,” Vojislav Lazarevic, chairman of the executive board of Addiko Bank Serbia, said.
Addiko Group is a network of banks in Slovenia, Croatia, Serbia, Montenegro and Bosnia and Herzegovina. It was established after the split of Hypo Alpe Adria Bank International and combines the performing assets. Today Addiko is 80% owned by the investment fund Advent and 20% by the EBRD. The EBRD is a leading investor in Serbia with more than 4.8 billion euro in investments to date.
($ = 0.854579 euro)
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