The FINANCIAL — IFC, a member of the World Bank Group, is providing financing of up €35 million to Eurobank a.d. Beograd to strengthen the bank’s mortgage lending and increase trade finance for companies in Serbia.
Long-term funding is critical to enabling capital investment and making housing finance affordable, yet it remains scarce in the Serbian banking sector. By working with Eurobank a.d. Beograd, IFC is boosting these financial tools and signaling its confidence in the Serbian banking sector, according to IFC.
IFC is providing two loans to Eurobank a.d. Beograd, a €15 million loan for financing mortgage lending growth and a €20 million loan to provide working capital financing for Serbian companies engaged in imports and exports. IFC provided a $60 million trade facility to the bank in during the 2011-2013 period, and a €38 million loan in 2010 to support small and medium enterprises in Serbia.
“We are very pleased to be signing this agreement today and expanding our already successful cooperation with one of the leading international financial institutions, such as IFC. By doing so, we also confirm our strategic focus on supporting the retail sector and Serbian export-oriented companies,” said Filippos Karamanolis, President of the Executive Board, Eurobank a.d. Beograd. “Thanks to this agreement, we will have an opportunity to offer our clients mortgage loans under highly favorable terms, tenor and interest rate.”
Eurobank a.d. Beograd has been operating in Serbia since 2003 and today it is ranked among the leading foreign investors and financial institutions in the country, offering a wide range of standard and innovative products and services to retail and corporate clients. The bank has a diverse corporate social responsibility program, through which it has invested more than €4 million in projects in education, public health, environmental protection, culture, and inclusive social development.
“One of IFC’s priorities is providing support to the financial sector through capital investments and long-term financing to major banks that promote systemic stability,” said Thomas Lubeck, IFC’s Regional Manager for the Western Balkans. “It is essential to keep the flow of credit to individuals and companies in Serbia and encourage further development and economic stability of the country.”