EBRD, Raiffeisen Bank Serbia expand MSME financing in Serbia under EU-backed scheme

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EBRD, Raiffeisen boost MSME finance

Highlights

EBRD provides a €35 million unfunded portfolio guarantee covering 50% of credit risk to support up to €70 million in new MSME loans by Raiffeisen Bank Serbia.
The facility, backed by the EU’s EFSD+ Growth for All programme, targets underserved Serbian businesses, including firms led by women, youth, and those in tourism, agriculture, and rural areas.
This initiative aligns with EBRD’s strategy, having invested over €11.3 billion in Serbia to date across 423 projects focused on sustainable infrastructure and private-sector competitiveness.

Risk-sharing facility targets underserved borrowers

As announced by EBRD, the institution is providing a €35 million unfunded portfolio guarantee that covers 50 per cent of the credit risk on a newly generated portfolio of MSME loans originated by Raiffeisen Bank Serbia. The structure is intended to support up to €70 million in new financing for Serbian businesses that often face obstacles to borrowing because of limited collateral or a short operating history.

The facility is backed by technical assistance and a first-loss counter-guarantee from the EU’s European Fund for Sustainable Development Plus, EFSD+ Growth for All programme. It is targeting underserved companies, including businesses led by women and young people, as well as small firms operating in tourism, agriculture and rural areas.

Aleksandra Vukosavljević, EBRD Director for Financial Institutions, Western Balkans and Eastern Europe, says the facility helps unlock lending across the country while also supporting investments in greener technologies and business practices. Zoran Petrović, Chairman of the Executive Board of Raiffeisen Bank Serbia, says the partnership expands financing access for entrepreneurs and companies facing added challenges in securing funding.

Financing supports Serbia’s wider economic development

MSMEs remain a core part of Serbia’s economy, making access to credit a significant issue for business growth, competitiveness and investment. By sharing part of the lending risk with Raiffeisen Bank Serbia, the arrangement is intended to lower barriers for banks to extend financing to smaller companies beyond the capital and into less-served segments.

The initiative also fits the EBRD’s broader investment strategy in Serbia, where the bank has invested more than €11.3 billion through 423 projects to date. Those investments focus on sustainable infrastructure, private-sector competitiveness, the green economy transition and financial-sector development.

In our earlier article on Pakistan’s push to expand priority-sector lending, we covered government targets to scale up credit for housing, agriculture and SMEs, alongside steps to simplify applications and accelerate approvals. The report also noted plans to use regulatory reforms, risk-sharing arrangements and public-private partnerships to reduce barriers that have kept many households, farmers and small businesses outside formal finance.

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