The European Bank for Reconstruction and Development (EBRD) is providing €60 million in financing to OTP Banka in Serbia. As part of the financial package, €10 million will be lent through the EBRD’s small and medium-sized enterprise (SME) Go Green programme which is supported by the European Union (EU).
The financial package will enable OTP Banka to continue supporting local SMEs’ investments in upgrading their technology and equipment, boosting competitiveness and supporting export potential. The loan will also support Serbia’s green economy: 50 per cent of the SME loan and 70 per cent of the SME Go Green portion will be on-lent for investments aligned with the EBRD’s Green Economy Transition (GET) approach.
Upon successful completion of their investment projects, SMEs financed through the SME Go Green programme will be eligible for a cashback grant of 10 per cent of the loan amount, or 15 per cent for investments in renewable energy and the agribusiness value chain. The incentives will be provided by the EU to help bridge the gap between high upfront costs and future return on investment.
SMEs are the backbone of the Serbian economy, providing two-thirds of the country’s employment. Improving their access to finance is vital for Serbia’s sustainable and inclusive economic growth, as well as its integration into regional and global markets.
OTP Banka Serbia is a longstanding partner of the EBRD, with a strong track record of supporting local SMEs that focus on green transition and sustainability. It is the largest retail and corporate creditor and the second-largest bank in the country. With 155 branches across its regions, OTP Banka is well-positioned to provide financing to businesses beyond Serbia’s largest cities.
To date, the EBRD has invested more than €8.7 billion in Serbia through 342 projects, of which the majority supported the private sector.