Serbia—Metals Banka—Western Balkans SME Finance Framework (SMB)

In the Western Balkans, only a few financial intermediaries have sought out small business customers, and conservative collateral requirements and cumbersome credit procedures have further limited small and medium-sized enterprises’ (SMEs’) access to finance. The European Bank for Reconstruction and Development established an SME finance facility to support Western Balkans countries in the transition to a market economy by strengthening the financial system and by increasing SMEs’ access to finance via the banking system, thereby enabling the SMEs to increase production and employment. DAI worked with Metals Banka to incorporate high-quality lending as an integral part of its ongoing business activities.

Sample Activities

• Implement a technical assistance programme accompanied by a €7 million credit line for on-lending to SMEs to help the bank strengthen its SME lending function.
• Advise the bank on product development, internal lending policies, and procedures and training for SME lending staff to increase SME lending.