EBRD facility helps entrepreneurs in Serbia

Importers and exporters in Serbia will have more opportunities to finance their foreign trade business under a EUR 2 mln trade finance line granted by the EBRD to Privredna Banka, a small to medium-sized commercial bank in Serbia. The facility will be used for guarantees in order to support trade in the region.

This is the fifth line that EBRD’s Trade Facilitation Programme (TFP) has signed so far with issuing banks in Serbia  and is expected add to the success of trade facilities that have already been put in place in the region.

The financing is extended under the EBRD’s Trade Facilitation Programme (TFP), which promotes foreign trade with countries within Eastern Europe and the CIS region. Through the programme, the European Bank for Reconstruction and Development provides guarantees to international confirming banks. The programme can guarantee any genuine trade transaction associated with exports from, or imports to, the EBRD’s countries of operations. More than 107 issuing banks in the region participate in the programme together with more 640 confirming banks globally. Since it began in 1999, the programme has facilitated 6,250 trade transactions worth a total €3.1 bln.

Since 1999, the EBRD has facilitated trade in Serbia through four banks, financing more than 370 foreign trade transactions with exporters and importers in 35 countries. The EBRD’s guarantees have covered a trade volume of €40 mln, including imports of consumer goods and households from China, South Korea, Turkey; electrical equipment from Belgium and food products from Spain and Italy.

The TFP in Serbia is supported by risk-sharing funds provided by Austria, the Netherlands, Norway and Switzerland. Local banks participating in this programme have also benefited from the EBRD’s trade finance training and advisory services, funded by Ireland and Sweden.

Privredna Banka is a small to medium-sized commercial bank based in Belgrade. Founded in 1973, it provides a wide range of products and services, with a specific focus on retail banking and SMEs.

The EBRD is one of the largest investor in Serbia, so far having committed almost €1.1 bln in 69 projects.