Slovenia—SME Finance Facility—Volksbank Ljudska

Client: European Bank for Reconstruction and Development

Duration: 2006-2007

Region: Eastern Europe and Central Asia

Country: Slovenia

Solutions: Economic Growth Governance

Having identified a need to deepen small and medium-sized enterprise (SME) credit markets in Slovenia, the European Bank for Reconstruction and Development undertook this project with the aim of building financial intermediaries’ confidence and capacity to assess risks and extend financing to Slovenian SMEs. DAI was contracted to design an appropriate lending methodology to allow Volksbank to substantially increase its SME lending activities.

Sample Activities

  • Design and implement a new IT system.
  • Design institution building strategy.
  • Train bank staff on credit analysis, financial forecasting, sales and marketing, and portfolio monitoring.

Select Results

  • At the end of the project, a total of €7 million had been booked by the bank.
  • The bank improved its cash flow lending methodology.
  • The bank improved documentation for new SME lending.
  • Designed an improved credit rating methodology.
  • Designed better marketing to SME clients.
  • Integrated environmental due diligence into the procedures of Volksbank in compliance with Slovenian regulations, and implemented appropriate information technology support for all necessary application, screening, monitoring, and reporting procedures.
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