Investment & Fund Management

The European Investment Fund (EIF) partnered with Crnogorska Komercijalna Banka AD (CKB) to address the significant challenge of financial exclusion faced by micro-entrepreneurs in Montenegro. Many of these individuals were unable to secure funding from traditional commercial banks, which limited their ability to develop their businesses. The tailored solution provided by EIF involved a EUR 5 million guarantee agreement under the EU Programme for Employment and Social Innovation (EaSI), aimed specifically at supporting up to 700 micro-borrowers over the next five years.

This agreement enabled CKB to introduce a new micro-credit product in the form of an overdraft facility, allowing disadvantaged micro-borrowers to access additional funds without the burden of collateral requirements. The overdraft facility, capped at EUR 10,000, is designed to offer loans at reduced interest rates, thereby making financing more accessible to those previously excluded from the financial system. This initiative not only supports the microcredit market in Montenegro but also fosters inclusive entrepreneurship, contributing to the broader goal of reducing social and financial exclusion.

As a result of this collaboration, CKB is now positioned to provide essential financial services to micro-entrepreneurs across the country, including in rural and remote areas. The initiative reflects a commitment to community development and the empowerment of micro-businesses, ultimately aiming to stimulate economic growth and job creation in Montenegro.