Raiffeisen Bank Serbia will be able to extend up to €70 million in new loans to micro, small and medium-sized enterprises (SMEs) under a risk-sharing arrangement with the European Bank for Reconstruction and Development (EBRD), supported by the European Union.
Under the agreement announced, the EBRD will provide an unfunded guarantee of up to €35 million, covering 50% of the credit risk on eligible loans originated by Raiffeisen. The programme receives EU support through the European Fund for Sustainable Development Plus (EFSD+), including a first-loss counter-guarantee and technical assistance.
Unlike conventional development-bank credit lines, the arrangement does not involve the EBRD directly financing the entire loan portfolio. Instead, it assumes part of the potential losses, allowing Raiffeisen to expand lending while limiting its exposure to eligible higher-risk borrowers. The facility targets businesses with limited collateral, shorter operating histories or restricted access to conventional bank financing, including women-led companies, young entrepreneurs and businesses in agriculture, tourism and rural areas.
SMEs face a declining share of corporate lending
The agreement addresses persistent financing constraints among smaller Serbian businesses despite continued growth in overall corporate credit. According to the OECD’s 2026 SME financing assessment, outstanding loans to Serbian SMEs increased 7.3% to €9.3 billion in 2024, while new lending reached approximately €6.4 billion.
SMEs accounted for just 31.9% of new corporate lending, down from 35.6% a year earlier. Their share of outstanding corporate loans also declined.
Borrowing costs remain another constraint. In 2024, foreign-currency and foreign-currency-indexed SME loans carried average interest rates of approximately 6.7%, compared with around 5.0% for large companies. Collateral requirements further restrict access to investment financing, particularly for companies without substantial property or equipment assets.
Risk-sharing structure supports additional bank lending
Under the portfolio guarantee, Raiffeisen will retain responsibility for loan origination and administration, while the EBRD will cover half the credit risk on eligible exposures within the agreed portfolio. The EU-backed first-loss counter-guarantee provides additional protection within the financing structure, supporting the EBRD’s risk-sharing commitment.
This arrangement is intended to expand the bank’s capacity to serve businesses that might otherwise face restrictions under conventional collateral requirements and internal credit-risk policies. The guarantee does not automatically ensure lower interest rates or eliminate borrower eligibility requirements. Loan pricing, collateral conditions and repayment obligations will continue to depend on Raiffeisen’s credit policies and programme terms. The EBRD approved the facility in July 2026, while the October announcement marked its public presentation.
EBRD expands portfolio guarantees across Serbian banks
The Raiffeisen facility forms part of a broader EBRD approach to financing Serbian businesses through commercial-bank risk-sharing arrangements. Similar programmes have involved UniCredit, Erste and ProCredit, reflecting a strategy of using guarantees to mobilise commercial-bank lending rather than relying exclusively on direct wholesale financing.
For participating banks, these arrangements can reduce exposure to eligible borrowers and create additional lending capacity. For development institutions, they provide a mechanism to support larger credit portfolios without committing an equivalent amount of direct funding. The economic impact will depend on whether guaranteed financing generates additional lending rather than replacing credit that banks would have provided under ordinary commercial conditions.
Green investment and regional businesses among target beneficiaries
The programme also seeks to support investment in greener technologies and more sustainable business operations. Smaller manufacturers, agricultural processors and service providers often face substantial upfront costs when purchasing efficient equipment, modernising facilities or introducing cleaner production technologies.
Partial credit guarantees, combined with technical assistance, could help these businesses overcome financing constraints associated with limited collateral and shorter financial histories. The facility also targets companies outside Serbia’s largest commercial centres, supporting broader access to finance across rural areas and the wider economy. The €70 million represents potential lending capacity rather than loans already disbursed. Its implementation will be assessed through the number of businesses financed, the volume of additional investment generated and the performance of the guaranteed loan portfolio.
