Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Crnogorska Komercijalna Banka (CKB) signed a guarantee agreement aimed at supporting Small and Medium-sized Enterprises (SMEs) in Montenegro through a Guarantee Facility under the Western Balkans Enterprise Development and Innovation Facility (WB EDIF). The specific challenge faced by SMEs in Montenegro was limited access to finance, which hindered their growth potential and overall contribution to the local economy.
To address this issue, the EIF provided credit coverage on a EUR 20 million portfolio of SME loans, offering attractive conditions over the next two years. This tailored solution was designed to enhance the financial resources available to SMEs, thereby facilitating their access to necessary funding for both investment and working capital.
As a result of this initiative, the guarantee is expected to significantly improve the financing landscape for SMEs in Montenegro, supporting them as vital growth drivers for the local economy. The collaboration between EIF and CKB is anticipated to translate into over EUR 300 million of direct financing for SMEs in the region, thereby fostering socio-economic development and aiding in the EU accession process for the Western Balkans.