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The European Bank for Reconstruction and Development (EBRD) has extended a landmark €12 million equivalent subordinated debt facility in Serbian dinars to ProCredit Bank Serbia (PCBS), marking the first time such a loan has been issued in local currency in the Western Balkans.
Strengthening Capital and Regulatory Resilience
The facility is designed to reinforce PCBS’s capital base and ensure compliance with regulatory requirements, including the Minimum Requirement for Own Funds and Eligible Liabilities (MREL). Structured with embedded call and early prepayment options, the transaction introduces international best practices in regulatory capital funding to Serbia’s financial sector.
Advancing Inclusive and Sustainable Finance
Aligned with the EBRD’s Green Economy Transition (GET) strategy, the loan proceeds will be directed toward:
- Green investments
- Micro, small, and medium-sized enterprises (MSMEs) led by women and youth
These groups often face significant barriers to accessing finance in Serbia. The local currency structure of the loan also mitigates exchange rate risk, offering tailored financial solutions suited to the operational realities of domestic borrowers.
Supporting MSME Succession Planning
Beyond financial support, the EBRD is partnering with PCBS to launch a training academy focused on succession planning for MSMEs, aimed at enhancing long-term business continuity and resilience within Serbia’s entrepreneurial ecosystem.
Leadership Commentary
Aleksandra Vukosavljević, EBRD Director for Financial Institutions in the Western Balkans and Eastern Europe, stated:
“This milestone transaction strengthens capital resilience, promotes local currency lending, and expands access to sustainable finance for underserved businesses.”
Igor Anić, Chairman of PCBS’s Executive Board, added:
“This partnership elevates our collaboration with the EBRD to a new level, enabling us to finance development and green economy projects while supporting vulnerable MSMEs.”
Longstanding Partnership
PCBS has been a key EBRD partner in promoting financial inclusion and sustainable development across the region. To date, the EBRD has invested over €10 billion in Serbia through 382 projects.
