Investment & Fund Management

The European Investment Fund (EIF) and Erste Bank Serbia entered into a guarantee agreement aimed at supporting micro-enterprises in Serbia under the EU Programme for Employment and Social Innovation (EaSI). The specific challenge faced by micro-borrowers in Serbia was the lack of access to traditional bank financing due to their risk profiles, which often prevented them from obtaining necessary loans to start or grow their businesses.

To address this issue, the EIF provided a guarantee covering a loan portfolio of EUR 4.7 million, which is expected to benefit around 850 Serbian micro-entrepreneurs. This agreement allows these micro-borrowers to access loans on favorable terms without the need for additional guarantees, thereby promoting inclusive entrepreneurship and helping to combat social and financial exclusion.

As a result of this tailored solution, Erste Bank Serbia is positioned to support vulnerable groups, particularly those who have been operating for less than two years and typically struggle to secure financing. The bank plans to implement a social banking program that not only provides financial support but also includes education and mentoring for these entrepreneurs, fostering their development and contributing to job creation and inclusive growth at the grassroots level. This initiative is part of a broader effort by the European Commission to enhance access to microfinance for vulnerable groups, with the overall goal of mobilizing significant additional investment in the sector.