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

Client: European Bank for Reconstruction and Development

Duration: 2006-2008

Region: Eastern Europe and Central Asia

Country: Serbia

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.

Egypt—National Bank of Egypt: MSME Lending Capacity Building

Loans to micro, small, and medium-sized enterprises (MSMEs) account for only 6 percent of the total loan portfolio of Egyptian banks, well below the 10 to 30 percent documented in the countries of the Organization for Economic Cooperation and Development. The Government of Egypt and Central Bank of Egypt have made access to finance for MSMEs a top priority and key area for banking sector reform.